The Ministry of Finance Maldives has instructed the Privatisation and Corporatisation Board (PCB) to implement a 33 percent reduction in the workforce of state-owned enterprises (SOEs), alongside introducing merit-based recruitment practices.

The directive was issued in a letter addressed to PCB President Mohamed Anas on Friday, as part of ongoing efforts to strengthen governance and improve management standards within SOEs in line with existing regulations.

According to the ministry, the workforce reduction aims to curb operational costs and enhance fiscal discipline.

The move is also expected to support broader reforms focused on improving human resource management and boosting institutional efficiency.

Under the new measures, SOEs are required to adopt structured recruitment frameworks that prioritise academic qualifications, professional competencies, and relevant skills.

The PCB has been tasked with overseeing the implementation of these reforms and establishing mechanisms to monitor compliance across all entities.

The ministry has further requested regular progress updates to ensure the effective execution of the directive.

These measures form part of a wider strategy to rationalise expenditure and strengthen the financial position of SOEs.

Earlier steps introduced by the government include tighter controls on salaries and allowances, restrictions on promotions and hiring except where necessary, as well as limits on overtime, travel, and other operational expenses.