'Investor Nation' forum discusses government's involvement in economy

2017-04-24 14:31:51
Ulaanbaatar /MONTSAME/ "Investor Nation 2017” investment forum took place in Ulaanbaatar for the first time on April 22-23. The forum, which was attended by members of the Parliament, namely D.Tsogtbaatar, L.Enkh-Amgalan and B.Javkhlan and leading investors, held discussions on investment, privatization, finance, technology and start-up businesses.

Instead of focusing solely on macroeconomic issues, the forum focused on informing investment opportunities and activating individuals and entities in the financial market. Also, the forum recommended transparency and information on investment, savings and risk management for the journalists working in economic and financial sectors.

During the panel discussion, the delegates commented on the government’s involvement in the economy

MP U.Khurelbaatar: the Government’s involvement in the economy has to be minimal.

"First of all, Mongolia has to improve its economic efficiency in order to survive and strive towards development. In this globalizing world, it is possible for Mongolia to develop by strengthening economic competitiveness and focusing on efficiency. In my opinion, the Government’s involvement in economy has to be kept at minimum".

Economist P.Amarjargal:
"Prioritizing the objectives of a country is important. And then we have to coordinate the possibilities with the objectives. In 1990-1992, Mongolia ensured private entities as an economic foundation with the constitution. In order to implement this resolution, the Government and related organizations have to make decisions based on this factor".

MP B.Enkh-Amgalan:

"The focus is on how the entire population becomes an investor. Everyone in Mongolia holds 1072 unit shares of Erdenes Tavan Tolgoi Company. But the majority doesn’t realize its value. The total value of these shares is equal to USD 10 billion and this is the lowest appraisal. Around 100 state-owned companies are at loss. Therefore, the government’s involvement in the economy has to be kept at minimum. Also, in order to grant opportunities for the public, privatization policy has to be implemented without further due. For instance, “Telecom Mongolia” JSC has lost major value due to the delay in privatization. If the company was privatized earlier, it would’ve been one of the biggest competitors in the telecommunications industry. Therefore, privatization policy has to be implemented fast".

Mining economist L.Naranbaatar:

"Mongolia is in dire need for investments, but not necessarily a foreign investment. The total asset of all commercial banks in Mongolia is estimated to be around MNT 10 trillion. If the public starts investing their capital into the stock market, instead of bank savings, the country will develop. We believe that only banks raise our money. And Investor Nation is recommending different options today. Taking an example on how privatization will develop the economy, 34 percent of “Mongol Post” JSC’s shares were privatized last year. The net profits of the company, which previously gained about MNT 90 million with higher expenditures, have been increased to MNT 1.1 billion within a year. Mongol Post JSC is a great example of how profits can be made from pure competition".