Pres. to formulate strategies to ensure SOEs operate profitably with financial autonomy

President Dr. Mohamed Muizzu has decided to formulate strategies to ensure that state-affiliated entities operate profitably and achieve financial autonomy from the government.

The decision was made following deliberations on a paper submitted to the Cabinet by the Ministry of Finance during Sunday's Cabinet meeting.

The President, upon the recommendation of his Cabinet, has formulated strategies that encompass revising the classification policy of state-owned companies and applying specific Key Performance Indicators (KPIs) to individual companies.

President Dr. Muizzu has further resolved to establish a policy within three months to enhance governance, institute progressive modifications, identify subsidy requirements, and formulate a comprehensive guideline for providing subsidies and capital.

The appropriate procedures for establishing new companies will be developed within three months. The Cabinet additionally resolved to allocate the first six months of 2025 as a probationary period to allow underperforming companies to make adequate headway. Companies that fail to demonstrate satisfactory progress within the timeframe will be restructured, merged, or dissolved.

The Cabinet, citing the halt of numerous infrastructure development projects across the nation, also decided to establish a new company in addition to the Maldives Transport and Contracting Company Public Limited (MTCC) to redouble these efforts today. Ensuring that state-owned companies operate profitably and achieve financial autonomy from the government is among the key pledges within the first 100 days of office, per the Administration's "Hafuthaa 14" roadmap.

The Cabinet further deliberated on decisions forwarded from the Social Council. This includes the decision to start teaching a subject on patriotism at the commencement of the upcoming Academic Year.