RACL, MACL to be merged, Fahidhiriulhun to be run under HDC

The government of Maldives has decided to merge many state owned enterprises in a bid to reduce operational costs and strengthen their management.

During a press conference held at the President's Office today, Economic Minister Mohamed Saeed said that the Cabinet decided to merge Regional Airports Company Limited (RACL) and Maldives Airports Company Limited (RACL). He also revealed that Fahidhiriulhun Corporation would operate under Housing Development Corporation (HDC) from now on.

With the merger, MACL and RACL will be under the same management with one Managing Director. This change is scheduled to come into effect on 31st January 2025.

Alongside this, the government has also decided to look into merging Maldives Fund Management Corporation (MFMC) and Business Center Corporation (BCC).

Saeed said these changes will significantly reduce the operational costs of the companies, and added that the move is part of the government's reform agenda to cut spending.

"Both companies have two offices (one each) rented for large amounts. [I] would like to especially point out there are buildings leased from Malé as well," he said.

Other than rent, RACL would also greatly benefit from working under MACL which has more financial and technical resources, he said.

In last Sunday's cabinet meeting, a decision was reached to run Fenaka Corporation as a subsidiary of STO. The government now aims to complete this transfer by January 1.

Merging possible government companies has been an aim of President Muizzu, with efforts to do so commencing last week.