Drop in 1st Quarter Revenue for State-Owned Enterprises

The first-quarter revenue for state-owned enterprises has dropped significantly compared to the previous year.

This year’s First Quarter Review published by the Privatization and Corporatization Board (PCB) shows that 31 state-owned enterprises earned a revenue of MVR 7 billion in the first three months of 2021. This is an MVR 1.1 billion decrease compared to the MVR 8.2 billion earned within the same duration last year.

State Trading Organization (STO) received the most revenue of all the state-owned companies. However, the company’s income has comparatively decreased by 13 percent. PCB attributed the decrease to the low prices of goods sold by STO. Although STO’s total revenue decreased, its health services had a 12 percent increase in revenue. STO runs numerous pharmacies and provides health supplies to hospitals and clinics across the country.

Despite the decrease in total revenue for state-owned enterprises compared to 2020, revenue has increased for some companies such as Road Development Corporation (RDC), SME Development Financing Corporation (SDFC), Business Center Corporation (BCC), Maldives Tourism Development Corporation (MTDC0, and Fenaka Corporation.

According to PBC, the revenue decreased due to the dire economic situation in the Maldives from the COVID-19 pandemic.