Muizzu to Discuss Merging SOEs in Cabinet Meeting
President Dr. Mohamed Muizzu announced that the cabinet will deliberate on the merger of six state-owned enterprises (SOEs) during a meeting today, as part of ongoing efforts to reform the country’s public sector.
ވަޒީރުންގެ މަޖިލީހުގެ ބައްދަލުވުން ކުޑައިރުކޮޅެއްގެ ތެރޭގައި ފެށޭނެ pic.twitter.com/Ptjf8Xkcka
— The President's Office (@presidencymv) September 1, 2024advertisement
advertisement
advertisement
Muizzu outlined three major proposals for consideration. These include:
The integration of the Regional Airports Company Limited (RACL) as a subsidiary of the Maldives Airports Company Limited (MACL)
The merger of the Fahi Dhiriulhun Corporation (FDC) with the Housing Development Corporation (HDC)
The consolidation of the Maldives Fund Management Corporation with the Business Center Corporation (BCC)
This follows last week’s decision by the cabinet to restructure Fenaka Corporation, a debt-laden utility company, as a subsidiary of the State Trading Organization (STO).
Muizzu Plans Investor Residency Talks to Diversify Economy
Muizzu also confirmed that the introduction of an investor residency programme will be discussed, aimed at diversifying the Maldivian economy.
The proposal to make loss-making SOEs subsidiaries of larger, more profitable entities forms part of a broader set of austerity measures introduced by the administration to enhance the government’s financial position.
The government has already implemented several initiatives to reduce expenditure and increase revenue, including legal amendments to reform the national healthcare scheme Aasandha, the introduction of targeted subsidies, and a requirement for companies generating US dollar income to pay taxes in the same currency.
These efforts come amid growing concerns about the country’s rising external debt obligations. Last week, Fitch Ratings downgraded the Maldives’ credit rating from ‘CCC+’ to ‘CC’, citing an increased risk of default.
