Gov’t Dissolves Two State-Owned Companies, Establishes Five New Entities

The government has dissolved two loss-making state-owned companies while establishing five new entities since taking office, Finance and Public Enterprises Minister Hassan Zareer told Parliament today.

Finance and Public Enterprises Minister Hassan Zareer has told Parliament that government-owned companies have recruited 4,938 employees since the current administration took office, compared with 18,053 recruited during the previous five-year administration.

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Speaking in Parliament, Zareer said government-owned companies employed 36,729 people before the current administration, with the number increasing to 41,667 following the recruitment of 4,938 employees since 2024.

The figures were presented during questions on the government’s management of state-owned enterprises.

Zareer said the current administration had dissolved two loss-making companies — the Maldives Sports Corporation and the Maldives Integrated Tourism Development Corporation (MITDC) — after determining that they had not adequately fulfilled their intended objectives.

The Sports Corporation had 12 employees when it was dissolved, all of whom were transferred to positions within the Ministry of Sports. MITDC had 10 employees when it was closed, and a liquidator has been appointed to oversee its winding-up process.

At the same time, the government has established five new companies: Maldives Fisheries and Ocean Resources Marketing and Promotion Corporation Limited, Development Bank of Maldives, Maldives Economic Gateway Development Limited, Infrastructure Development Company, and State Pharmaceutical and Medical Supply Corporation Limited.

The five companies have recruited a combined 156 employees, according to Zareer.

A further 733 employees previously working in STO’s medical supply operations were transferred to the State Pharmaceutical and Medical Supply Corporation following its establishment.

The government has also signed an agreement to merge Regional Airports Company Limited with Maldives Airports Company Limited (MACL). Zareer said the merger was intended to support the sustainable operation of regional airports and would save MVR 10 million from the state budget.

Addressing the government’s redundancy programme, Zareer said the government did not support dismissing employees of state-owned companies based on their political affiliation, ideology or personal opinions.

He said the Ministry of Finance and Public Enterprises had not directed state-owned companies on their day-to-day operations, other than providing policy-level guidance.

Zareer also raised concerns over the size of the public sector, stating that public sector employees account for 53 per cent of the country’s workforce.

He argued that the number of public sector employees would need to be reduced to strengthen the economy and move it towards the structure seen in developed countries.