PBC orders SOEs to implement cost cutting measures

The Privatisation and Corporatization Board (PCB) on Wednesday ordered state-owned companies and their subsidiaries to take further measures to cut costs.

In a circular sent to companies, PCB said it is taking several steps to redirect and overcome the economic and financial crisis in Maldives.

The circular directed all domestic and international travel to be minimised to only necessary trips. It also encouraged online meetings with global suppliers and customers rather than travelling for in-person meetings.

In the event of absolutely necessary overseas travel, the directive disallowed business and first class tickets. Even if outside parties arrange travel expenses, all expenses borne by the company should be limited, the circular read.

The circular also asked companies to opt to travel by ferries where available and to reduce the cost of meals during such trips. Companies were also asked not to participate in seminars and fairs that do not directly benefit them.

Measures to reduce employee costs:

- Not hiring additional employees except when necessary

- No changes in salaries and allowances except in accordance with standards issued by the PCB.

- Overtime work should also be limited to only necessary tasks

- Stop making payments and salaries in dollars

- Not outsourcing work unless absolutely necessary.

- If there are excess of employees or if they have more idle time, utilise such staff in projects.

The PCB also asked the SOEs to use renewable energy if possible in order to reduce the cost of electricity and to digitise transactions by reducing the cost of paper and stationery.

The circular also asked companies to comply with the PCB guidelines in giving out sponsorships and initiating CSR projects. It further directed not to incur additional expenditure except for essential items included in the approved annual budget.