Zareer: 4,938 staff hired for SOEs in this administration bringing total to over 41,000

Finance Minister Hassan Zareer, on Tuesday, said that 4,938 employees were hired to State-Owned Enterprises (SOEs) since the current administration assumed office, bringing the total workforce across these companies to more than 41,000.

Responding to a question from North Galolhu MP Mohamed Ibrahim (Kudu) from opposition, during Tuesday’s parliamentary sitting, Zareer said the government does not support dismissing employees on the basis of political affiliation and has not issued any such directive to SOEs.

Citing statistics from the Privatization and Corporatization Board (PCB), Zareer outlined the historical growth of the SOE workforce. He noted that at the end of former President Abdulla Yameen’s administration in 2018, SOEs employed 18,676 people. By the end of former President Ibrahim Mohamed Solih’s administration in late 2023, the figure had increased to 36,729, representing a rise of 18,053 employees.

"As of the end of last month, the total number of employees reached 41,667. Therefore, the number of staff hired from the beginning of 2024 to date is 4,938, which represents a 13 percent increase," Zareer stated.

The Minister stressed the need to "rightsize" SOEs as part of efforts to strengthen the national economy. He maintained that the process would be carried out without consideration of employees’ political affiliations.

Notably, PCB directed SOEs in April to reduce their workforce by 33 percent within three months. The Ministry of Finance stated on April 18 that it had advised the PCB to take measures to improve operational efficiency, strengthen human resource management, and ensure financial sustainability. The directives included workforce reductions as part of broader efforts to reduce administrative costs and reinforce fiscal discipline.

In a country with a population of approximately 400,000, the civil service employs more than 30,000 people, while an estimated 20,000 others work across government agencies, independent institutions, and political offices. Economists have repeatedly raised concerns over the large number of people employed by the state compared with the size of the private sector.

With a substantial share of the national budget allocated to recurrent expenditure, concerns have also intensified over the continued losses incurred by many SOEs. Historically, the use of state-owned companies for political recruitment and persistent allegations of corruption within these entities have remained significant challenges in the Maldives.