SOEs Hire Over 2,000 Employees in Q1 2024 Amid Profit Decline

The PCB's Quarterly Review reveals that by the end of 2023, budget-supported SOEs employed 3,072 individuals, while self-sufficient SOEs had 27,314 employees.

By the end of Q1 2024, the total workforce across all SOEs had risen to 33,284, marking an increase of 2,545 employees from the previous quarter. Among budget-supported SOEs, WAMCO hired the most new employees, growing its workforce to 2,262 from 1,734 at the end of 2023.

The hiring trend in SOEs has shown a steady increase over the years, with the total number of employees rising from 18,529 in 2019 to 30,739 in 2023.

Despite the increase in employment, SOEs experienced a 20 percent decline in overall net profit during Q1 2024. While total revenue for the quarter rose by 5 percent to MVR 13.74 billion, net profit dropped from MVR 2.10 billion in Q1 2023 to MVR 1.69 billion in Q1 2024.

The government allocated MVR 1.33 billion in grants, subsidies, and capital injections to support SOEs during the quarter, with subsidies accounting for MVR 1.22 billion of the total. The rising expenditures and debt levels of SOEs, along with allegations of politically motivated hiring practices, have raised concerns about the sustainability and efficiency of these enterprises.