MSE is one of the six state-owned companies to be privatized.

Finance Minister B.Choijilsuren held a press conference on November 11, officially announcing the privatization of six state-owned companies following the ratification of the 2017 state budget on November 10.

The six companies being privatized are:

• State Bank (valued at 75 billion MNT)

• Mongolian Stock Exchange (valued at 20 billion MNT)

• Orgil Hot Springs (valued at 7 billion MNT)

• Telecom Mongolia (valued at 7.6 billion MNT)

• Mongol Post (valued at 20 billion MNT)

• Erdenet Bulgan Electricity Distribution Network (valued at 30 billion MNT)

1 COMMENT

  1. The Mongolian government needs divest itself from direct investment in mining. Tax the resource, tax the business activities, regulate the environment and worker safety issues. Sell off its ownership in mining use those funds to invest in infrastructure and education.

    Governments are not now and never have been good at owning or operating businesses. Function of government is to provide security for the population and to create an environment that promotes economic growth while protecting the national identity and culture.

    Function of a corporation is to provide profits to its investors. Owners of of a corporation should not be part of the regulatory system in a country. And they should not be driven by political whims.

    Looking at the mining projects owned or invested into by the Mongolian government shows virtually zero net profits during the last 10 years. Investment costs and thus added debt burden to the nation, inherent inefficiencies within government and the added costs with reduced productivity net tax revenue is lower.

    This is not a Mongolian problem. It is a problem anytime government tries to directly own or manage a business anywhere in he world. Simply it does not work. SO is time for the Mongolian government to divest itself of ownership, recover some of its investment, use the funds to assist in the current economic crisis. Adjust the tax structure on natural resources to be more like developed countries. By promoting economic activity the financial situation will largely correct itself in time.

    There are other issues such as the apartment market in UB and governments promoting of low interest rates. Low bank rates allowed prices to rise well above the real market value based on the economic activity in Mongolia. Sadly a lot of people are going to lose their homes or investments as the market contracts. This will add pressure to the banks and limit their ability to support valid business opportunities.

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