SOE workforce increased by 18,053 under MDP, 4,938 under current government

The number of employees across State-Owned Enterprises (SOEs) increased by 18,053 during the five-year term of the previous MDP administration, compared with an increase of 4,938 under the current government, according to figures presented to Parliament.

Minister of Finance and Public Enterprises Hassan Zareer told Parliament today that the SOE workforce stood at 18,676 in 2018 and had increased to 36,729 by the end of 2023.

Responding to a question from Galolhu Uthuru MP Mohamed Ibrahim, Zareer said statistics from the Privatization and Corporatization Board (PCB) showed that 18,053 employees were added to state-owned companies between 2019 and 2023.

This represented an increase of approximately 97 percent over the five-year period.

The minister disclosed the figures while responding to questions concerning SOE recruitment and the government's policy on rightsizing state-owned companies.

According to figures presented to Parliament, the SOE workforce currently stands at 41,667, an increase of 4,938 employees, or about 13 percent, from the 36,729 recorded at the end of 2023.

Zareer said the significant expansion of SOE workforces during the previous administration had placed additional pressure on the state budget. He said MVR 634 million had been provided as advance subsidies by the end of the previous administration to meet wage-related expenses.

The minister said the current administration has begun taking measures to rightsize and streamline state-owned companies while ensuring that employees affected by restructuring have opportunities outside the state sector.

As part of those efforts, the government has established a framework through which employees leaving SOEs can access financing opportunities under the SME Impact Fund to establish or expand private businesses.

Zareer stressed that the government does not support dismissing employees on the basis of political affiliation or political views.

He said the Finance Ministry has not instructed any SOE to dismiss employees for political reasons.

However, Zareer said the ministry, as the representative of the state's shareholding in SOEs, has a responsibility to ensure that companies remain financially and operationally sustainable.

Considering the country's financial situation, the ministry has issued guidance through the PCB on several occasions for companies to streamline their operations and improve efficiency, he said.

Zareer clarified that these instructions are intended to improve operational efficiency and financial self-reliance and do not involve directing the day-to-day management of companies or decisions concerning individual employees.

Addressing questions about newly established state-owned companies, the minister said five new companies currently employ a total of 889 people.

However, he said only 156 of those positions represent new additions to the overall state-company workforce.

The remaining 733 employees were transferred from State Trading Organisation (STO) to the State Pharmaceutical and Medical Supply Corporation following the transfer of pharmaceutical operations to the newly established company.

Of the five new companies, the State Pharmaceutical and Medical Supply Corporation employs 866 people, while the Development Bank of Maldives employs 17 and the Maldives Fisheries and Ocean Resources Marketing and Promotion Corporation employs six.

Maldives Economic Gateway Development Ltd and Infrastructure Development Solution Company currently have no employees, according to the minister.

Zareer also outlined measures being taken to reduce the number of state-owned companies and consolidate entities that are unable to operate sustainably.

Maldives Sports Corporation was dissolved after failing to achieve its intended objectives, with its 12 employees transferred to the Ministry of Sports.

The liquidation of Maldives Integrated Tourism Development Corporation (MITDC) is also underway, with a liquidator appointed. The company currently has 10 employees.

The minister also highlighted the merger of Regional Airports Company with Maldives Airports Company Limited (MACL), an agreement for which was signed on May 28, 2025.

According to Zareer, the merger is saving the state budget approximately MVR 10 million per month in staff and operational expenses.

He said the consolidation is also intended to move regional airports towards greater revenue self-sufficiency with support from MACL.

Zareer said the government would continue taking measures to strengthen the financial position of state-owned enterprises, improve operational efficiency and reduce their dependence on the national budget.