The Privatisation and Corporatisation Board (PCB) has issued new directives requiring state owned enterprises to reduce spending and pause hiring and promotions, citing economic pressure linked to the Middle East conflict.
What the directive says
Under the directive, companies are required to reduce expenditure on salaries and allowances, organise work within official hours, and limit overtime to essential services. Promotions and new recruitment have been suspended, including for positions within approved structures, unless they are necessary for operations. SOEs have also been asked to manage salary related costs carefully to maintain cash flow.
The board has further instructed that spending be limited to essential activities. Non essential events and ceremonies are to be cancelled, while necessary events should be carried out with reduced costs and shared resources.
Earlier Measures
These measures build on earlier guidance from the PCB, which included limiting official travel, conducting meetings online where possible, suspending overseas training, and reducing international travel. Companies were also advised to cut electricity use and consider renewable energy options.
Context
The directive comes after reports that some SOEs created new roles and recruited staff ahead of the 4 April Local Council Elections. Authorities say the current steps are aimed at managing costs as external pressures continue.
