Minister Zameer said that it is important for state owned enterprises to focus on their specialized areas of operation.
Minister of Finance Moosa Zameer said today that Hajj Corporation diversifying into businesses like operating guest houses may not yield favorable outcomes.
Hajj Corporation has decided to establish a city hotel in Kaafu atoll Maafushi, one of the largest local tourism destinations in the Maldives and invest in halal tourism.
Minister Zameer said that it is important for state owned enterprises to focus on their specialized areas of operation.
Hajj Corporation, which manages funds for facilitating Hajj pilgrimages, should prioritize its core mandate, he said.
If the corporation has excess funds, it would be better to hand them over to specialists with expertise in the industry for profitable investments.
The board and shareholders of the Hajj Corporation need to evaluate whether running a guest house is the most effective and profitable use of their resources, Zameer stated.
"If companies like HDC, Hajj Corporation, and Fenaka start building guest houses and resorts, the results will not be positive," he said.
Zameer said state owned companies diversifying into sectors beyond their mandates would be problematic.
The minister stated that policy-level discussions will be conducted as part of the government's corporate reform agenda to address these concerns.
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