The Mongolian Business Summit 2014 entered its second day today with parliament members, governors, and the president in attendance in addition to foreign investors. Government members opened the event announcing discussions related to government involvement in the business world. As a part of the 100 Day Stimulus Plan the event’s main purpose was to listen to business representatives who discussed the biggest barriers holding back foreign investment and how to solve these issues.
300 people attended the event, many of whom were foreign investors hailing from 20 different countries. Ts. Elbegdorj, the President of Mongolia, said that private businesspeople are the main initiators of transactions. The private sector right now is like an orphan, a child raised by its stepfather’s hand, who has stayed by the government’s side even during hard times. On the other hand, politicians, who once wielded many promises, remain silent during these times of hardship. Thus, it is imperative to promote the private sector.
The event initiated a law that defined government participation in business. The government should pay if they want to be involved in the business world. It is prohibited for them to steal businesses under the state name. Representatives urged the private sector to become an initiator. The government should only offer their involvement, not instigate any actions. Many representatives stated that private businesses know the responsibility of handling the business world while the government has high operating costs and has a tendency to slip money. After the president’s speech, a new discussion was launched called “Invest Mongolia.”
The Cabinet Secretary, C. Saikhanbileg, the Prime Minister, C. Batbold, and the head of Mongolian Financial Market Association, L. Byambaa were the main speakers. C. Saikhanbileg introduced the plans that will be made throughout the 100 days of the plan and presents findings every Monday. As part of the plan, 23 law projects have been submitted to parliament for review. Of these 23 projects, 11 of them are related to tax issues. These tax changes were made in hopes of promoting the private sector.
L. Byambaa discussed the non-mining sectors – agriculture, food, real estate and tourism. She said that many projects are related to tourism; however this sector has halted due to a lack of investment. This is an attractive sector that should be revitalized because it has potential to bring in foreign investors. In order to ensure the sustainable growth of Mongolia, stable investment and the development of the financial market is necessary.
Representatives and the president also announced that Mongolians can’t build an economy based on the banking sector in terms of financing. What needs to be done is the revitalization of the Mongolia Stock Exchange and state-owned companies should be made public in order to expand the Mongolian economy. Two main ideas were presented throughout the event. The first idea is that the Mongolian government is ready to promote foreign investment and the second idea is that the government is officially announcing that it is taking its hands out of the private sector, allowing businesses to remain the sole initiators of the business world.