Gov't-owned companies directed to implement cost-cutting measures

The Privatization and Corporatization Board (PCB) has instructed government-owned companies to implement a number of measures to cut costs.

In a circular sent to companies, PCB emphasized the need for the companies to take steps to cut costs as the government continues to work towards overcoming the current economic downturn faced by the Maldives. PCB asked for their cooperation in efforts to reduce costs.

Cost-cutting measures directed by the PCB include cutting travel and staff costs, increasing digital communication to reduce paper usage, and minimizing expenditures on social responsibility initiatives, sponsorships, and refreshments at events. To reduce travel costs, PCB advised to limit trips abroad and to the atolls strictly to official business. They suggested holding meetings with foreign clients and suppliers online, attending only essential seminars and fairs, and opting for ferry travel when feasible. Companies have also been instructed to minimize food and accommodation costs during atoll trips, avoid first-class travel for trips under six hours, and reduce expenses on trips funded by foreign entities.

The PCB has also asked companies not to employ new workers except for essential roles, not to change the salaries and allowances of the employees without the permission of the PCB, and to organize their work in such a way that employees do not have to work overtime. In addition, the companies have been asked to utilize their existing employees and resources available in the Maldives if training is required and to stop paying salaries and allowances in dollars.

In a broader effort to reduce government spending, the government has begun merging companies with similar functions. The process is expected to reach completion by January next year.