Minister: Redundant SOE employees can tap into MVR 600M startup fund

Finance Minister Hassan Zareer says the government has set up an MVR 600 million startup fund that employees who are dismissed under the initiative to cut the workforce of state-owned enterprises by 33 percent can tap into to start their own business.

Zareer, who was summoned to the Parliament on Tuesday, made the remark in response to a question by North Galolhu MP Mohamed Ibrahim (Kudu), a lawmaker from the main opposition Maldivian Democratic Party (MDP).

 Zareer said that the Maldives needs to study and follow how developed countries manage their economies in order to develop its own economy.

He said that “rightsizing” SOEs was a crucial step towards elevating the Maldivian economy to the next level.

He also insisted that the redundancy program was being carried out without any discrimination, with no regard to the political leanings of the employees.

“And as we right size, we must also consider that each and every one of these employees is a Maldivian citizen; a Maldivian child born to a Maldivian mother and father,” he said.

He said that protection of the rights of citizens remains the government top priority.

Zareer said that the government has a special mechanism in place to implement the initiative, including offering redundancy packages based on their period of service.

He added that the MVR 600 million Kumevi Fund by SME Digital also offers an alternative path to redundant SOE employees.

Zareer said that the Business Center Corporation (BCC) offers assistance in preparing proposals to apply for loans via the fund.

“The establishment of the MVR 600 million fund I mentioned, that is to facilitate small business and startups. Therefore, if anyone wishes to start their own business, they can submit their proposal. We introduced this facility through SME Digital,” he said.

Zareer said the purpose of the fund is to support more paths to generating incomes beyond conventional office jobs.

“Instead of just making them redundant, we show each and every one of them an alternative path. The purpose of this fund is to facilitate a way that they can feed themselves, instead of us feeding them,” he said.