OPEN FOR BUSINESS

Mongolia is on the move. A country that continues – rightly – to be proud of our unique language, history and culture, we’re emerging from the pandemic with a clear plan to modernise our economy and society and take advantage of the opportunities offered on the world stage.

Our Vision 2050 programme, adopted in 2020, looks ahead to where Mongolia should be by the middle of this century through the delivery of broad-based and sustained economic growth at its core. Though our country has long benefited from thriving minerals and natural resources sectors, our future growth needs to be more resistant to external shocks and the volatility of certain commodity markets if we are to increase the standard of living for Mongolian citizens for the long-term.

Making a mark in today’s global economy relies on embracing new thinking and harnessing the opportunities provided by technological change. This is no more so the case than in relation to the modernisation of Mongolia’s state-owned enterprises, which provide essential services such as water, telecommunications and the maintenance of transport infrastructure across the entire country.

On 29 June, Mongolia’s Cabinet decided to transfer ownership of 25 state-owned enterprises through public offering. This was subsequently approved by the Mongolian Parliament. The listings through the Mongolian Stock Exchange – which will take place this year and next – will generate revenue that will be invested back into the companies to improve use of technology and more broadly make them fit to meet the challenges of the future, such as changing consumer demands and environmental sustainability.

To take this programme forward, 34 per cent of the Mongolian Stock Exchange will be publicly traded in the fourth quarter of 2022. Shares in the Mongolian Telecom Company and National Reinsurance will be offered in the first quarter of 2023, with the issuing of shares in the other companies taken forward in Q4 next year. The Mongolian government is also undertaking a series of mergers of state-owned enterprises, to increase efficiency and eliminate duplication between their operations.

These reforms mark a significant departure for Mongolia as we prepare to take advantage of the new opportunities available for growth in the decades ahead. It builds on the strong foundations of our country’s robust recovery from the COVID-19 pandemic. Strict quarantine guidelines and a vaccination drive has ensured 70 per cent of the Mongolian population is now fully vaccinated, so many day-to-day activities have been able to resume this year, including a significant recovery in the tourism sector.

The share offerings in state-owned enterprises may be the first major step in Mongolia’s post-pandemic economic modernisation, but it certainly won’t be the last. At the end of last year, the Mongolian Parliament ratified the Government’s MNT 100-120 trillion (US$31.8-38.1 billion) New Revival Policy, designed to boost the country’s post-COVID recovery by opening up Mongolia to more foreign and domestic investment.

Increasing capacity at border points and ports to increase exports, expanding the capacity of the Mongolian energy sector to two-and-a-half times what it is today and supporting green growth are all key parts of this plan, alongside improving productivity in the public sector.

The recently announced share offerings, and plans for new investment in technology, are a core part of this drive to improve productivity, working in partnership with the private sector and relevant professional associations. The Mongolian government continues to work with the business community to identify opportunities for collaboration and joint working to deliver sustainable growth.

In the meantime, the message is going out loud and clear from Mongolia to the world: this is a country on the move, and we are very much open for business.