A US-sponsored report says nine state-owned Marshall Islands enterprises are a major drain on the country's limited financial resources.
The report was compiled by the Graduate School USA, with funding from the US Department of the Interior.
It found that of the nine SOEs, none generated a profit in the 2009 to 2011 period.
It also compares their performance to the 1999-2001 period, and shows that only two - the Marshalls Energy Company and the National Telecommunications Authority - were profitable more than a decade ago.
The report says the Marshall Islands government's level of subsidy to the SOEs has now reached a critical level, indicative of the need for reform.
This week, legislation to ramp up accountability and performance of state-owned enterprises was introduced to the parliament.