The Privatisation and Corporatisation Board (PCB) has issued a directive to state-owned companies, urging them to implement stringent cost-cutting measures as part of the government’s broader strategy to reduce expenditure.
In the directive, the PCB highlighted the necessity of reducing both travel and employee-related expenses. Companies have been advised to limit travel to essential trips only, both domestically and internationally. The PCB has recommended that meetings with foreign suppliers and customers be conducted online to further reduce costs.
The directive explicitly instructed that employees should not travel in first class for official trips unless absolutely necessary. Additionally, it advised companies to prioritise ferry travel when available and to avoid attending non-essential meetings, seminars, and fairs that do not directly benefit the company.
To curb employee expenses, the PCB advised that only essential staff should be hired, with no changes to salaries and allowances without prior PCB approval. The directive also discouraged overtime work and the payment of salaries and allowances in US dollars. Companies were encouraged to utilise in-house qualified employees for training purposes instead of outsourcing.
Further recommendations included digitising operations as much as possible to reduce electricity consumption, as well as cutting back on paper and stationery costs. The PCB also instructed companies to ensure their procurement expenses align with their annual procurement plans and to minimise spending on corporate social responsibility (CSR) initiatives and sponsorships.
The government is expected to take additional steps to reduce spending, including merging some companies and restructuring others as subsidiaries of larger entities to lower operational costs.
These directives come amid worsening economic conditions, with the economy facing significant challenges, including a forex crisis and record-high US dollar rates in the black market. The opposition has criticised the government for not taking sufficient measures to reduce costs, particularly pointing to the record number of political appointees with high salaries, which continue to increase despite the economic downturn.