RACL-MACL merger saves state MVR 10 million a month, minister says

The merger of Regional Airports Company Limited (RACL) with Maldives Airports Company Limited (MACL) has reduced government expenditure by approximately MVR 10 million per month, Minister of Finance and Public Enterprises Hassan Zareer told parliament on Tuesday.

Zareer provided the update while responding to questions during a sitting of the People's Majlis.

The merger and liquidation agreement between RACL and MACL was signed on 28 May 2025. RACL had been established during the previous administration to manage regional airports, while MACL operates Velana International Airport and other airport facilities.

According to the minister, the merger eliminated the monthly government subsidy previously required to cover RACL's salaries and operating costs.

“With assistance from MACL, work is currently underway to structure regional airport operations so that they can be sustained directly through the revenues generated by those airports,” Zareer said.

The minister said the merger forms part of the government's efforts to reduce expenditure and improve the performance of state-owned enterprises (SOEs).

Providing an update on SOE restructuring, Zareer said one company, the Sports Corporation, has been fully dissolved, while the Maldives Integrated Tourism Development Corporation (MITDC) is currently undergoing liquidation.

He also noted that five new state-owned companies have been established under the current administration:

According to the minister, the five companies have collectively recruited 156 employees.

In addition, 733 employees previously responsible for pharmaceutical and medical supply operations at the State Trading Organisation (STO) were transferred to the State Pharmaceutical and Medical Supply Corporation.

As a result, the total workforce across the five companies stands at 889 employees.

The government has previously stated that reforms to the SOE sector are intended to reduce costs and improve operational performance.