Minister of Finance Dr. Mohamed Shafeeg has underscored the imperative nature of reforming state-owned enterprises (SOEs), describing it as essential rather than optional. During a recent session with the Public Accounts Committee of Parliament, he emphasised that both domestic and foreign financial institutions have highlighted the necessity of these reforms for the Maldives' economic progress.
Minister Shafeeg pointed out that effective restructuring of SOEs is crucial to meet public expectations for improved services. He highlighted the financial challenges facing the government, stressing that without reforms, these difficulties will persist in the future. Despite originally scheduling financial reform initiatives for later in the year, the administration has prioritized these efforts since its inception.
The minister reported significant progress in reducing SOE expenditures, citing savings of USD 162.3 million achieved through reform measures. He specifically noted improvements at entities like Fenaka and Road Development Corporation (RDC), where monthly savings of USD 1.1 million have been realized through enhanced efficiency and management of overdue bills.
Highlighting President Dr. Mohamed Muizzu's commitment to SOE reform, Minister Shafeeg outlined announced policies aimed at transforming state-owned entities into financially self-sustaining entities that minimize reliance on state funding. These policies encompass subsidy revisions and capital management strategies.
Minister Shafeeg concluded by urging parliamentary cooperation in advancing these reform efforts. Currently, 32 SOEs operate in the Maldives, with a majority operating at a financial loss, surpassing their revenues with expenditures.