Maldives SOE Sector Shows Growth, STO Remains Top Revenue Contributor

The latest quarterly report from the Privatization & Corporatization Board (PCB) reveals positive trends within the Maldives’ State-Owned Enterprise (SOE) sector. As of the end of Q3 2023, the sector’s total asset value increased to MVR 167.95 billion from MVR 152.87 in the corresponding quarter of 2022.

Total revenue for the SOE sector reached MVR 11.58 billion in Q3 2023, with a corresponding profit of MVR 1.61 billion. State Trading Organization PLC (STO) continues to be the leading revenue contributor, accounting for MVR 4.1 billion (36%) of the sector’s total revenue.

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While total loans and borrowings stood at MVR 32.43 billion, the report highlights that staff payroll costs for the SOE sector exceeded MVR 1.01 billion. However, it is noted that this figure likely underreports the true total, as 10 SOEs did not provide complete payroll information.

Increased Transparency in Reporting

The PCB report introduces greater transparency in SOE reporting. For the first time, SOE trade receivables and payables are disclosed, and staff information is broken down by gender and level (Senior Management, Management, and Other Staff). A new Labor Efficiency table tracks quarterly staff salary expenses as a percentage of revenue, including data for individual SOEs.

Challenges and Omissions

Some SOEs did not provide the information required for inclusion in this quarterly review, potentially impacting the accuracy of sector-wide employee numbers. The report lists both the SOEs that omitted data and those that failed to submit their quarterly reports within the designated timeframe.

Overall, the report paints a picture of a growing SOE sector that plays a vital role in the Maldivian economy. The PCB’s efforts to enhance reporting transparency will further aid in understanding the sector’s performance.

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