36,000 employees on SOEs’ payroll; 7,000 in Fenaka alone

The number of people employed in various state-owned enterprises (SOEs) has risen above 36,000.

According to the quarterly report released by the Privatization and Corporatization Board (PCB) on Monday, the number of employees at SOEs was recorded at 36,753 at the end of Q2 2024.

The biggest employer is the utility company Fenaka Corporation, with 7,045 employees. The Maldives Transport and Contracting Company (MTCC) is ranked second with 4,762 employees, followed by Maldives Airports Company Limited (MACL) with 4,518 employees.

The report shows that only 16 out of 30 SOEs are self-sufficient, while the remaining 14 depend on government funding.

According to the report, employees on the payroll of SOEs rose by 2,698 compared to Q1 2024, with the companies spending MVR 270.98 million on the payroll in Q2 2024.

The government has been rolling out fiscal consolidation measures across SEOs in an effort to cut costs. On January 30, the PCB for the monthly salaries of top executives at SOEs, except for banks, to be capped at MVR 90,000.

The high-number of employees at SOEs as well as the lack of self-sufficiency of many of the companies is a longstanding issue in the Maldives.

Consecutive Maldivian administrations have been accused of using recruitment of employees to SOEs for political tool.