Maldivian Government Allocates MVR 1.2 Billion to SOEs in First Quarter Amid Rising Costs

In the first quarter of this year, the Maldivian government spent MVR 1.2 billion from the State Budget on State-Owned Enterprises (SOEs), according to recent statistics published by the Privatization and Corporatization Board (PCB). The largest portion of this expenditure went toward subsidies granted to these companies.

Out of the total expenditure, MVR 60 million was provided as free aid, while MVR 164 million was allocated for capital injections—a 9% increase compared to the same period last year.

Among the SOEs, Housing Development Corporation (HDC), Road Development Corporation (RDC), and Maldives Fund Management Corporation (MFMC) received the highest support for administrative costs. HDC was allocated MVR 84 million, RDC received MVR 24 million, and MFMC was granted MVR 28 million. Waste Management Corporation (WAMCO) was given MVR 13 million, and Addu International Airport (AIA) received MVR 10 million.

In terms of subsidies, HDC once again topped the list, receiving MVR 400 million. The State Trading Organization (STO) followed with MVR 360 million, while Fenaka Corporation was provided MVR 250 million in subsidies.

Despite the significant financial support, 14 out of 30 SOEs reported losses during the first quarter of the year.

In response, the government has issued directives for SOEs to implement cost-cutting measures. Plans are also underway to merge certain enterprises and shut down others to streamline operations and reduce overall expenditure.