CMDA: SOEs can benefit from capital market; privatization is good

Capital Market Development Authority (CMDA) states that the government’s privatization program is a promising program that will benefit all Maldivians.

In a joint press conference by CMDA and Maldives Stock Exchange (MSE) on Tuesday, CMDA’s CEO Mohamed Hussain Manik said that privatization of State-Owned Enterprises will expand the capital market sector and benefit companies.

“Privatizing through the capital market is the best approach. It will benefit all members of the general public… We hope to see this happen in the coming year,” he said.

MSE’s CEO Aushan Latheef said the institution had always hoped to see the government push to develop the domestic capital market.

He said that previous calculations show its possible for SOEs to raise funds through the capital market.

Aushan provided details of the funds raised by companies in the 14 years since the capital market was established in Maldives.

“MVR 2.33 billion has been raised so far. This is a significant figure for such a short period of time. So there is potential for SOEs to raise the funds they need in this market,” he said.

According to the state budget for 2022, the state expects to raise MVR 771 million through privatization of SOEs.

The government conducted research linked with the privatization plan this year, and the MSE held discussions with, and provided counsel to the Privatization Board.