Gov’t Announces MACL and RACL Merger by January’s End

Minister of Economic Development and Trade Mohamed Saeed has announced that the Maldives Airports Company Limited (MACL) and the Regional Airports Company Limited (RACL) will merge by the end of January. 

This move is part of the government’s cost-cutting measures. In a press conference held yesterday, Saeed explained that the merger will bring significant financial benefits by consolidating resources and eliminating redundant costs, such as office rentals in Malé. 

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The integration will also expand MACL’s operations to include eight additional airports, such as Hanimaadhoo International Airport. Currently, MACL only manages Velana International Airport. The merger will place these airports under a single managing director, improving operational efficiency and providing RACL access to MACL’s superior financial and technical resources.

In addition to the MACL-RACL merger, the Cabinet also approved several other major structural changes, including:

• The merger of the Fahi Dhiriulhun Corporation (FDC) with the Housing Development Corporation (HDC),
• The consolidation of the Maldives Fund Management Corporation (MFMC) with the Business Center Corporation (BCC),
• The integration of AgroNet into the Maldives Industrial Development Free Zone Company.

These efforts are part of the government’s broader strategy to streamline state-owned enterprises and improve financial sustainability. Last week, the Cabinet also decided to merge Fenaka Corporation, a state utility burdened with debt, into the State Trading Organisation (STO) as a subsidiary.

In addition to these structural reforms, the government plans to relaunch its investor residency programme, designed to attract foreign investment. Minister Saeed clarified that this initiative will differ significantly from a similar programme previously introduced by the Maldivian Democratic Party (MDP)-led administration. 

The new programme, to be managed in collaboration with one of the top five global companies in the field, will aim to attract between 1,500 to 2,000 primary applicants and up to 4,000 secondary applicants in its first five years, generating an estimated USD 6 million in indirect investments and USD 1.1 billion in direct investments.

The proposed changes mark a significant step in the government’s ongoing cost-cutting efforts and economic reform agenda, which seek to enhance the performance of state-owned enterprises and boost investor confidence.