Parliament urges MMPRC to cut costs, hike revenue
The report stated that MMPRC should evaluate measures to become self-reliant by generating additional revenue and reducing expenditure.
Parliament on Wednesday recommended that the Maldives Marketing and Public Relations Corporation (MMPRC) reduce its operational costs and work towards generating more revenue.
The recommendation was included in a report prepared by the State-Owned Enterprises (SOE) Committee following a study into the financial and operational status of MMPRC and the Maldives Integrated Tourism Development Corporation (MITDC). The report was passed with 62 votes in favour.
The committee noted that MMPRC’s financial condition has declined to the extent that it is unable to carry out its responsibilities without government assistance. The company has not reported any profits since 2020 and lacks the funds to execute its core promotional programmes or repay existing loans.
The report stated that MMPRC should evaluate measures to become self-reliant by generating additional revenue and reducing expenditure.
According to financial data included in the report:
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In 2019, MMPRC earned MVR 132.5 million in revenue.
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In 2023, revenue declined to USD 22.3 million, representing an 83% drop from 2019.
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Despite the revenue drop, direct costs and operational expenses were higher in 2023 compared to 2019.
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MMPRC recorded a net profit of MVR 23.6 million in 2019 but ended 2023 with a loss of MVR 27.7 million.
MMPRC issued a statement last week responding to the committee’s findings. The company stated that the largest share of its current debts accumulated during the previous government’s four-year term. It reported financial losses over the past four years as follows:
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MVR 1.6 million loss in 2020
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MVR 141 million loss in 2021
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MVR 42 million loss in 2022
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MVR 17.9 million loss in 2023
The corporation described these losses as a key reason behind its current financial position.
MMPRC stated it has taken steps over the past year to improve its operations. These include:
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A 10% reduction in overall expenditure
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A review of global public relations partnerships, reducing the number of international PR agencies from 21 to six
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A cost saving of over MVR 4 million through these PR-related adjustments
The parliamentary committee called for continued monitoring and reform to improve the financial stability of the company.
