Treasury Tightens SOE Spending & CSR Rules from 2026 📈

The Treasury has introduced a revised framework (Circular No. 01/2025), effective 1 January 2026, to strengthen financial discipline and transparency in State-Owned Enterprises (SOEs) regarding non-core expenditure. • Spending Cap: Annual expenditure on sponsorships, donations, CSR, and indirect promotional activities is strictly capped at 1% of the SOE’s actual recurrent expenditure from the previous financial year. • Funding Prohibition: Treasury budgetary provisions are strictly prohibited from being used for any such spending. • Financial Contribution: SOEs must remit a minimum of 30% of profit after tax annually to the Consolidated Fund and are encouraged to declare interim dividends based on quarterly performance. • Strategic Alignment: Boards must ensure all expenditures are non-political, non-personal, justified, and fully aligned with the Government's broader national development agenda. • Governance & Reporting: New mandatory requirements include submitting quarterly expenditure summaries and maintaining a dedicated internal register for audit purposes.