Government Allocates USD 45 Million to Boost SME Jobs Amid State Layoffs

The Maldivian government is set to distribute over USD 45.28 million to support local businesses and expand job opportunities through the SME Digital fund. This initiative aims to provide a financial safety net and new economic pathways for citizens, particularly those impacted by recent budget cuts and layoffs within the public sector. Speaking at a press conference at the President’s Office, Minister of Finance and Public Enterprises Moosa Zameer announced that the government is fast-tracking the distribution of these funds. On the direct instruction of the President, USD 16.17 million from the SME Digital Fund will be released immediately. An additional USD 29.11 million is scheduled for distribution over the next three to six months. This financial injection comes as the government implements rigorous austerity measures across State-Owned Enterprises (SOEs). To reduce government spending and ensure long-term financial stability, the Privatisation and Corporatisation Board (PCB) has urged companies to reduce their workforce by 33 percent. The SME fund is specifically designed to facilitate economic engagement for these displaced workers, encouraging them to transition into entrepreneurship. Beyond funding, the Ministry of Finance is pushing for a fundamental shift in how state companies operate. The Ministry has directed these entities to adopt a strict merit-based hiring scheme, prioritizing educational qualifications, skills, and capability over other factors to create a more competent and efficient workforce. To further align with national financial regulations, the government has imposed strict controls on corporate spending. Companies have been instructed to limit salaries and allowances, freeze new hiring and promotions, and significantly reduce expenditures related to overtime and travel. These measures represent a broader strategic effort to reshape the state's corporate landscape while attempting to mitigate the social impact of budget reductions through private sector growth.