SOE workforce doubled under previous govt, says finance minister
The minister also assured parliament that any employee made redundant through restructuring would receive compensation based on their length of service.
The workforce of state-owned enterprises (SOEs) doubled during the five years of the previous administration, while 4,938 employees have been recruited under the current government, Minister of Finance and Public Enterprises Hassan Zareer told parliament on Tuesday.
Zareer provided the figures while responding to questions from members of the People's Majlis regarding employment levels within state-owned enterprises and ongoing efforts to restructure the sector.
According to the minister, records maintained by the Privatisation and Corporatisation Board (PCB) show that SOEs employed 18,676 people at the end of 2018.
Between 2019 and 2023, SOEs added 18,503 employees, increasing the workforce to 36,729 by the end of 2023.
Zareer said that from 2024 until last month, state-owned enterprises recruited a further 4,938 employees, bringing the current workforce across SOEs to 41,667.
Addressing concerns regarding recent workforce reduction measures, the minister said the government has not instructed companies to dismiss employees based on political affiliation.
He explained that the Ministry of Finance and Public Enterprises, together with the PCB, has issued policy directives aimed at improving the financial and operational performance of state-owned enterprises.
“Considering the fiscal situation of the Maldives, the Ministry, through the Privatisation and Corporatisation Board and in its capacity as the government shareholder in state enterprises, has repeatedly issued instructions to strengthen these companies to achieve rightsizing,” Zareer said.
The minister stated that while the government has provided policy guidance on rightsizing, it has not directed individual companies on specific employee dismissals or day-to-day operational decisions.
He said the Maldivian economy remains heavily dependent on employment within the government and state-owned enterprises, describing the public sector workforce as larger than required.
“Therefore, there is work that needs to be done to resolve this issue,” he said.
Zareer argued that reforms aimed at improving efficiency are necessary if the Maldives is to strengthen economic performance and align with practices adopted in other countries.
“If we follow those practices, we must rightsize to elevate the Maldivian economy to the next level,” he said.
The minister also assured parliament that any employee made redundant through restructuring would receive compensation based on their length of service.
The government has previously announced plans to reform state-owned enterprises, while the PCB has issued guidance calling for a reduction in staffing levels across SOEs.
