Finance Ministry introduces cost-cutting steps to companies

Finance Minister Ibrahim Ameer. (File Photo/Sun/Fayaz Moosa)

Finance Ministry has come up with cost-cutting policies regarding the economic impact expected on the country following the Coronavirus outbreak in the world.

Finance Ministry issued the nine policies aimed to cut costs to government-owned companies.

The pay structure of these companies is not to be affected as part of these policies, however, the Finance Ministry ordered not to introduce any new allowances whether included in the budget or not within the year.

The company paid trips abroad are also limited to necessary ones and senior officials are mandated to follow the official policies for such trips, according to the policy circular.

Moreover, renovation projects such as carpet changes and partition works are also to be limited to the necessary amount.

Occasions except national-level ones are also not be celebrated, and the Finance Ministry also called on these companies to lower the internet and communication costs as well.

Power saving measures such as switching off electricity consuming machines when not in use, and saving paper are also introduced by the Ministry. Capital costs other than those necessary to provide a service to the public are also to be cut down. The Ministry also issued to limit the overtime hours of employees.

Although a case of the disease has not been tested positive in the Maldives, the country’s economy is expected to be hit by the travel restrictions across the world, since tourism is the biggest industry of the Maldives. One of the main reasons for the economic impact is the travel restrictions and cancellation of direct flights from China, which is the biggest source of tourism arrivals to the Maldives.