Govt launches MVR 600 million fund for redundant SOE employees and entrepreneurs
Zareer said the fund, named Kumevi, has been established under SME Development Finance Corporation (SME Digital).
The government has established a MVR 600 million fund to support employees affected by state-owned enterprise (SOE) restructuring and individuals seeking to start their own businesses, Minister of Finance and Public Enterprises Hassan Zareer said on Tuesday.
The minister made the announcement while responding to questions during a sitting of the People's Majlis.
According to Zareer, employees made redundant through SOE rightsizing measures will receive severance compensation based on their length of service. In addition, the government has created financing opportunities to help affected individuals pursue self-employment and business ventures.
Zareer said the fund, named Kumevi, has been established under SME Development Finance Corporation (SME Digital).
“We have established an MVR 600 million fund under SME Digital. Therefore, whether someone is laid off through this rightsizing process or is any state employee wishing to start self-employment, they can submit business proposals and access capital through this fund,” he said.
The minister stated that the fund is intended to provide financing for individuals seeking to establish businesses and generate income independently.
According to Zareer, the Business Center Corporation (BCC) will provide assistance to applicants in preparing and developing business proposals.
“This funding is already secured and available at SME Digital. So instead of just making people redundant, we are creating pathways for everyone. The core purpose of this fund is to enable people to earn their living rather than simply relying on handouts,” he said.
The minister reiterated that decisions relating to workforce reductions in state-owned enterprises are not based on political affiliation.
He said the government had established support mechanisms because employees affected by restructuring should have access to opportunities to continue earning a livelihood.
The government has previously stated that its SOE reform programme aims to improve the financial and operational performance of state-owned enterprises while reducing expenditure.
