The Ministry of Industry declared the new year to be dedicated to supporting the activities of the industrial sector and sales.
“We need to intensively support domestic producers, circulating money in reality,” said a ministry representative. Minister D.Erdenebat highlighted that if the legal environment causes any difficulties for developing and supporting production, the ministry will begin work on developing laws and regulations immediately.
The ministry believes that in order to support sales and production, the state’s domestic purchases need to be increased. Currently, there is only one ministry in Mongolia that supports domestic producers. Around 80 percent of the clothes and tools of the Ministry of Defense are provided by domestic producers.
The Industry Ministry says it is preparing to establish an agreement with the Ministry of Education and Science for supplying student desks, chairs, beds for school dormitories, and student uniforms from domestic producers. The sides are expected to sign the document in January.
State Secretary of the Ministry of Industry D.Nyamkhuu emphasized that by domestically supplying resources for the education sector, around six billion MNT could be saved from current spending. Approximately 2.3 billion USD is spent on student desks and chairs annually, with the majority of them imported from Japan and China. The average price of an imported desk and chair stands at over 200,000 MNT, but they can be purchased domestically for around 120,000 MNT.
Director of Smart Solutions B.Purevdorj said, “We have the potential to fully ensure domestic needs. Our company has the capacity to produce 20,000 to 30,000 student desks and chairs per year. However, we do produce around 1,000 desks and chairs and supply them to private schools. We purchase metal from the Darkhan Metallurgical Plant, which means that our raw material is supplied domestically, so the price is almost half that of imported desks and chairs.
Minister of Industry D.Erdenebat made a statement denying local media reports that the nation’s money supply has been shrinking in the domestic market. The reports suggest that small and medium-sized enterprises and entities have suspended their activities because of poor sales, leaving many unable to repay their debts. He said that the loan repayment rate of small and medium-sized enterprises is at 95 percent, but he claimed that sales have slowed down due to economic turnover. The Minister believes that utilizing domestic production will greatly contribute to circulating the “blood” of the nation’s economy.SOURCE: The UB Post