Government Announces Major Corporate Restructuring
The Maldives Cabinet has approved the merger of several key government-owned enterprises. This decision is part of a broader reform plan designed to streamline public sector operations and reduce unnecessary spending. Economic Minister Mohammed Saeed announced the new measures during a press conference held at the President’s Office.
Consolidation of Airport Companies
One of the most significant changes involves the merger of the Maldives Airports Company Limited (MACL) with the Regional Airports Company Limited (RACL). This consolidation will place both entities under a single management structure, with a unified managing director to oversee their operations. By bringing these two airport management companies together, the government expects to improve operational efficiency and reduce costs.
As part of this restructuring, eight regional airports, including Hanimaadhoo, will be managed under MACL. This merger is anticipated to drive synergies across the aviation sector, allowing for better resource allocation and streamlined services.
Strengthening Urban Development Capabilities
In addition to the airport mergers, the Cabinet approved the integration of Fahi Dhiriulhun Corporation into the Housing Development Corporation (HDC). This move aims to enhance HDC's ability to execute urban development projects, particularly in the areas of housing and infrastructure. By pooling resources, the government expects to strengthen HDC’s role in delivering key development projects across the country.
Merging Financial Institutions for Cost Savings
The government’s cost-cutting strategy also extends to financial institutions. The Maldives Fund Management Corporation will be merged with the Business Center Corporation (BCC). According to Economic Minister Saeed, both organizations currently operate from expensive rental properties, and their consolidation is expected to lead to significant savings. This merger is also aimed at improving service delivery by creating a more efficient and unified management structure.
Fenaka Corporation to Fall Under STO Control
In line with its commitment to improving public sector efficiency, the government recently placed Fenaka Corporation Limited under the control of the State Trading Organization (STO). This move is part of the same broader reform agenda designed to streamline operations and reduce redundancies in state-owned enterprises.
Implementation Set for 2025
The implementation of these corporate mergers is scheduled for January 31, 2025. The government is confident that these changes will contribute to a more sustainable and efficient economy, benefiting both the public sector and the citizens of the Maldives.
Minister Saeed reiterated that these reforms reflect the government’s dedication to reducing unnecessary expenditures while enhancing the performance of public enterprises. The Cabinet believes that the new organizational structures will pave the way for better services and greater cost savings in the long term.