Gov’t to introduce bill to prevent misuse of resources by SOEs

The government has announced plans to introduce a special bill in parliament next year aimed at preventing the misuse of resources by state-owned enterprises (SOEs). This initiative, detailed in the Budget Position Report for 2025, follows recommendations from international financial institutions. The proposed bill, to be introduced during the first session of the year, seeks to strengthen corporate governance and streamline the management of SOEs. The new legislation will repeal the existing Privatization and Corporatization Board Act, transferring responsibility for SOEs to the Ministry of Finance, which will become the primary shareholder. Key provisions of the bill include measures to reduce financial mismanagement, over-recruitment, and promote merit-based hiring. It will also establish transparent procurement procedures to prevent resource misuse and mitigate corruption risks. The legislation will introduce a framework for evaluating company boards and reinforce financial management systems across the sector. In a broader effort to reduce public spending, the government plans to cut capital and loan expenditure for SOEs, which is projected to account for 10.2% of next year’s budget. These reforms are part of the government’s strategy to improve efficiency and accountability within state-owned companies.