PCB asks govt companies to cut costs
The PCB has urged all state-owned enterprises to implement these measures to ensure financial discipline and operational efficiency.
The Privatisation and Corporatisation Board (PCB) on Wednesday directed state-owned companies to implement cost-cutting measures and refrain from providing additional monetary gifts during Ramadan.
The directives were issued Wednesday through two circulars—one regarding the payment of Ramadan allowance and the other on expense reduction.
The circular on Ramadan allowance states that companies must pay Muslim employees the mandated MVR 3,000 as required by the Employment Act. However, no additional payments beyond this amount should be made. It further clarifies that:
-
Employees with multiple paid jobs will receive the allowance from their primary employer.
-
Employees on paid or unpaid leave during Ramadan will not be eligible for the allowance. If an employee returns to work during Ramadan, the allowance will be paid from the working day.
-
Non-executive board members are not entitled to the allowance.
The second circular outlines cost-cutting measures related to staff expenses, travel, and other corporate expenditures.
Staff cost reduction measures:
-
No new employees should be recruited unless essential for operations, even if the position exists within the approved organisational structure.
-
Changes to salaries and allowances must comply with PCB-issued guidelines.
-
Work should be completed within official hours, with overtime restricted to essential tasks.
-
No dollar-denominated salaries or allowances should be paid from state-owned enterprises with dollar revenues.
-
In-country training should utilise company resources and personnel.
-
Outsourcing should be minimised to essential services only.
-
Employees in underutilised departments should be assigned to ongoing and upcoming projects instead of hiring additional staff.
Travel cost reduction measures:
-
Travel outside the Maldives and to other provinces should be limited to essential official trips.
-
Overseas meetings should be conducted online where possible.
-
First-class and business-class travel should be avoided for official international trips.
-
Expenses should be minimised on trips where costs are covered by foreign entities.
-
Ferry services should be used where available.
-
Travel arrangements should be planned to reduce accommodation and meal costs.
-
Participation in external seminars and fairs should be limited to those directly beneficial to the company.
Other cost-cutting measures:
-
Renewable energy should be utilised where possible to reduce electricity costs.
-
Spending on paper and stationery should be minimised, with a shift to digital transactions.
-
State-owned companies should share resources for events.
-
Refreshment costs at events should be minimised.
-
Procurement should align with the company’s approved annual plan and budget.
-
Consumables should be purchased in quantities necessary for operations.
-
Corporate social responsibility (CSR) activities and sponsorships should comply with PCB-issued guidelines and be cost-effective.
-
No additional expenditures should be made beyond the approved annual budget.
The PCB has urged all state-owned enterprises to implement these measures to ensure financial discipline and operational efficiency.
