Minister of Finance and Public Enterprises Moosa Zameer has directed sweeping reforms across State-Owned Enterprises (SOEs), including a mandatory 33 percent workforce reduction, as part of a broader push to strengthen governance, cut costs, and ensure long-term financial sustainability.
In a letter dated April 17 and signed by the Minister, the Ministry instructed the Privatization and Corporatization Board (PCB), headed by Mohamed Anas, to implement immediate measures within the existing legal framework to enhance oversight and operational performance across state-run companies.
The directive outlines a series of actions aimed at improving efficiency and tightening fiscal discipline. Central to the reforms is a significant downsizing of the SOE workforce, alongside stricter expenditure controls designed to curb operational costs and improve financial management.
Authorities have also ordered a comprehensive overhaul of recruitment practices. SOEs are now required to strictly adhere to merit-based hiring policies, prioritizing candidates based on qualifications, skills, and professional competence. The move is expected to raise institutional performance and ensure that key positions are filled by capable individuals.
The Ministry stressed that these measures come at a critical time, as the government seeks to align SOE operations with national fiscal policies and reinforce economic resilience. The PCB has been tasked with communicating the directives to all relevant entities and closely monitoring compliance, while providing regular progress updates to the Ministry.
The latest instructions build on earlier cost-cutting policies introduced by the PCB, which included restrictions on salaries and benefits, a freeze on promotions and non-essential hiring, limits on overtime, and reductions in travel and discretionary spending.
The reform agenda signals a decisive shift toward leaner, more accountable state enterprises, as the Maldives moves to safeguard public finances and improve the efficiency of its corporate sector.
