Улаанбаатар
PM: “SOEs Must Lead in Implementing the State Austerity Policy”
Politics
Ulaanbaatar, August 20, 2025
/MONTSAME/. By the order of Prime Minister Zandanshatar Gombojav, the
Government was instructed to eliminate inefficient expenses and optimize the structure
and staffing of state-owned enterprises (SOEs) and factories. The Prime
Minister met with officials from the “Erdenes Mongol” Group and its subsidiaries to review the results of the official directive.
Chief Executive Officer of the
“Erdenes Mongol” Group, Narantsogt Sanjaa, introduced its change and reform
plans to increase revenues and reduce expenses in three phases.
“Erdenet Mining Corporation”
SOE aims to surpass its revenues by MNT 208 billion, while other subsidiary
companies aim for an outperformance of MNT 95 billion. While the sales incomes
of “Shivee Ovoo” and “Baganuur” companies reduced by MNT 32 billion, “Erdenes
Tavantolgoi” postponed investment activities worth MNT 199 billion, “Erdenet Mining
Corporation” worth MNT 320 billion, and others worth MNT 36 billion. In
addition, “Erdenes Tavantolgoi” is estimated to cut down operational costs by
MNT 1.3 billion, and others by MNT 45 billion.
Prime Minister Zandanshatar
noted, “Improving the quality, accessibility, and
productivity of public services is the Government’s priority. The public
criticizes the superfluous structure and poor productivity of state-involved
and -owned enterprises. Approximately 38,000 of the 188,000 citizens who
submitted suggestions for the 2026 State Budget Draft poll proposed to dismantle
SOEs, cut down wasteful costs, and reduce bloated structures. The Government
will acknowledge and consider citizens’ constructive criticism and suggestions
in its work.
The Erdenes Mongol Group is
obligated to implement the constitutional article on the fair distribution of benefits
from natural resources to the people. You have the potential to generate
benefits worth up to MNT 4 trillion, which the revenue increase plan for 2025
must not reduce below.” The Premier reminded that SOEs must lead in implementing
the State Austerity Policy.
Furthermore, reminding that the “Erdenes Mongol” Group must increase exports and tax contributions to the State Budget in 2026 to enrich the National Sovereign Wealth Fund, the Premier highlighted the importance of planning and managing processing factories and procurement activities within the Group.
