State-owned companies advised to cut down expenses

The Privatization and Cooperation Board (PCB) has advised state-owned companies to cut down costs and eliminate wasteful expenditure.

After analyzing the financial status and performance of state-owned enterprises, PCB reported Maldives Islamic Bank (MIB), MWSC, MACL, BML, HDFC, as well as Dhiraagu, STELCO and MTDC to be the most financially thriving state-owned companies in 2018.

In their annual financial review of SOEs, PCB considered the financial status of several companies, and noted that STO suffered a drop in net profits due to impairment of Hulhumale’ hotel and increased Administrative and Selling and finance costs.

Furthermore, the opening of the Sinamale' bridge weighed MTCC down heavily due to decline in demand for public transport, resulting a significant revenue loss for the company.

In addition to cutting down expenses, PCB advised to revise the salary structures of companies.

PCB has previously warned of losses caused by state-owned companies due to wasteful expenditure and poor operational structures.