The recruitment of large numbers of young people by Fenaka Corporation during the previous administration has had a negative impact on the fisheries sector, Chief Government Spokesperson Mohamed Hussain Shareef said on Saturday.

Speaking during a series of press conferences at Public Service Media (PSM), Shareef (Mundhu), said the previous Maldivian Democratic Party (MDP) government made large-scale recruitment to Fenaka a common practice, drawing workers away from traditional industries.

"If you go fishing, you need crew members. But in some islands there are strong fishers who have left their vessels to resorts on rent as supply boats," he said.

Shareef said the large-scale hiring of young people by Fenaka had affected several economic sectors in the islands, with the fisheries industry experiencing the greatest impact.

His remarks come days after Fisheries Minister Ahmed Shiyam said the industry was facing difficulties in recruiting Maldivians to work on fishing vessels.

Fenaka has begun reducing its workforce as part of efforts to cut costs and improve its financial position. The company has offered employees who choose to leave voluntarily a package equivalent to four months' salary.

Shareef said the voluntary resignation programme was introduced to address staffing issues without resorting to immediate dismissals and to ensure the process complies with the law.

The government has announced plans to reduce the workforce of Fenaka and other state-owned companies by about one-third as part of broader restructuring measures.

As part of those efforts, utility services in several atolls previously managed by Fenaka have also been transferred to Stelco, citing Fenaka's financial situation.