President Dr. Mohammed Muizzu has announced that Fenaka Corporation Limited will be appointed as a subsidiary of the State Trading Organisation (STO) Public Limited. This decision follows a recommendation by the Cabinet and a proposal put forth by Finance Minister Mohamed Shafiq.

Under the new arrangement, STO will acquire 100% of Fenaka Corporation Limited’s shares. The transition will involve necessary amendments to Fenaka’s general rules and regulations, and the implementation of reforms aimed at strengthening governance within the STO group, adhering to best practices.

The decision is also expected to streamline business processes within Fenaka and implement changes at STO's discretion. A key component of this transition involves optimizing Fenaka’s workforce. The administration aims to explore opportunities for reassignment of employees within the STO group, rather than resorting to terminations, aligning with the administration's core policies.

To facilitate the transition, a committee will be established, consisting of representatives from the Ministry of Finance, the Privatization and Corporatization Board (PCB), and STO. This committee will oversee and coordinate the timeline and process of the transfer.

President Muizzu has set a goal to complete the full transfer of Fenaka Corporation Limited to STO by the end of the year. This move is part of broader efforts to enhance efficiency and governance within state-owned enterprises in the Maldives.