In a significant move towards economic reform, the Maldives government has announced the merger of the Regional Airports Company Limited (RACL) with Maldives Airports Company Limited (MACL), a decision aimed at reducing operational costs and streamlining airport management across the country. This was confirmed by Economic Development Minister Mohamed Saeed during a press conference held at the President’s Office.
The merger, which has been approved by the Cabinet and endorsed by President Dr. Mohamed Muizzu, is set to be completed by January 31. Minister Saeed emphasized that this merger is part of the government’s broader strategy to reform state-owned enterprises (SOEs) and enhance their efficiency.
Minister Saeed highlighted that combining RACL and MACL under the principles of corporate governance will result in substantial cost savings. “The operational costs, including rent and other expenses, will be significantly reduced,” he said, noting that MACL, being a highly profitable company and the main gateway to the Maldives’ tourism industry, is well-equipped to take on the additional responsibilities.
The merger is not expected to disrupt the services provided by either company. Instead, it aims to make operations more robust and efficient, according to Saeed.
The government’s decision to merge these companies has been welcomed by international financial institutions such as the International Monetary Fund (IMF) and the World Bank, which have recognized the efforts towards economic reform.
In addition to the RACL-MACL merger, the Cabinet also discussed the potential consolidation of the Maldives Fund Management Corporation and the Business Development Service Centre (BCC). Moreover, President Muizzu raised the possibility of transferring Fahi Dhiriulhun Corporation Limited (FDC) to the Housing Development Corporation (HDC) or merging the two entities.
These mergers and restructurings are part of the government’s ongoing efforts to improve public services and strengthen the financial stability of SOEs. Upon taking office, the current administration discovered that several SOEs were facing financial difficulties, with some on the brink of bankruptcy. In a related move, the government has already transferred Fenaka Corporation Limited to operate under the State Trading Organisation (STO), further consolidating state-owned entities to optimize their performance.
