Oct 8, 2024 50 min read Daily News Summaries

Mongolia News Summary for October 08, 2024

The following news articles are the opinions of their authors and publications. They are presented here as translations for informational purposes and do not necessarily represent the opinion of Mongolia Strategy Center or its members.

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Politics

IMF Deputy Managing Director Commends Mongolia's Achievement of Political and Economic Stability

Published: 2024-10-07 | Translated from: gogo.mn

The Prime Minister of Mongolia, L. Oyun-Erdene, met with Kenji Okamura, Deputy Managing Director of the International Monetary Fund (IMF), last Friday to exchange views on cooperation. The Prime Minister expressed gratitude for the IMF's close collaboration with the Government of Mongolia for over 30 years and its support in stabilizing the economy. He highlighted that the primary goal of the coalition government is to maintain stable economic growth and to drive faster, more intensive development, noting plans to implement a new regional development strategy and 14 mega projects along with 14 socio-economic reforms. Furthermore, since 2021, Mongolia's Gross Domestic Product (GDP) has been increasing by 1,000 USD annually, surpassing 6,000 USD in 2023. The projected figure for this year is around 6,800 USD per capita. The government is focusing on diversifying the economy, improving the investment environment, and modernizing the energy sector. The Prime Minister noted the importance of IMF's guidance in executing these initiatives. IMF Deputy Managing Director Kenji Okamura expressed appreciation for the meeting with the Prime Minister and praised the creation of conditions for achieving political and economic stability as "Vision-2050," Mongolia's long-term development policy, continues to be implemented. He emphasized that the IMF stands ready to provide support and assistance in fulfilling the macroeconomic objectives, measures, and reforms set by the Government of Mongolia. Particularly, the IMF will work together with the government in implementing energy and regionally targeted tax reforms to ensure they are conducted effectively with minimal economic risk and negative impact, providing recommendations in this regard. Near the Prime Minister, a National Council is working to implement the "Vision-2050" development policy and to ensure inter-sectoral coordination. The Prime Minister invited international organizations and donor institutions cooperating with the IMF and Mongolia to participate in this council.

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Can the MPP Recall Its Members Involved in the Constitutional Breach?

Published: 2024-10-07 | Translated from: unuudur.mn

Issues concerning the mandate of some members elected from the Mongolian People's Party (MPP) in the 2024 parliamentary elections have begun to surface. It has become clear that at least three members have violated the Law on the State Great Khural (Parliament) and even the Constitution. According to Article 29.1 of the Constitution, "A member of the State Great Khural shall receive a salary from the state budget during his term of office. Except for the Prime Minister and members of the Government, a member of the State Great Khural may not hold any position or job that is not related to his or her official duties as prescribed by law." Furthermore, Article 43.1 of the Law on the State Great Khural states that "A member has the right to concurrently perform the following jobs and duties during his term of office," including in Article 43.1.4 "elected positions related to the essential functions of international organizations or their specialized bodies of which Mongolia is a member." Specifically, the law prohibits members of parliament from working as executive directors of international organizations and their specialized bodies. However, Member of Parliament D. Enkhtüvshin remains the president of the National Chamber of Commerce and Industry (MNCCI), Member of Parliament S. Erdenebat is still the president of the Confederation of Mongolian Trade Unions (CMTU), and Member of Parliament D. Regdel remains the president of the Mongolian Academy of Sciences (MAS). The parliamentary office has issued recommendations and notifications to them reminding of the above legal breaches. The Law on the Chamber of Commerce and Industry describes MNCCI as a non-profit organization established to protect the general rights and lawful interests related to commerce and industry of enterprises and organizations and to promote commerce and industry. The president of MNCCI is regulated by the organization's rules, meaning the president is elected by the general assembly of the Chamber. However, the president can be relieved of duties and recalled by two-thirds of the board members. D. Enkhtüvshin was elected MNCCI president in September 2023. Regarding the CMTU, there is a peculiar law called "The Law on the Rights of Trade Unions of the People's Republic of Mongolia," which includes provisions such as "Heads of administration of factories and enterprises cannot concurrently hold elected positions in trade unions." In September 2024, S. Erdenebat represented the CMTU in South Korea upon the invitation of the trade union organization there. During this visit, it was agreed to carry out specific work within the framework of cooperation in legislative matters affecting workers' rights between the two countries. S. Erdenebat's involvement as a member of parliament and CMTU president is unusual given these laws. The Law on the Legal Status of the Mongolian Academy of Sciences states that the "Academy is a state scientific institution aiming to develop science and modern technology in Mongolia," and within this framework, the president of the academy is appointed by the Prime Minister and, if not approved, a new election is held. Though the general conference has not yet convened to relieve D. Regdel and elect a new president, the current situation is unresolved as D. Regdel himself claims an acting president was appointed, although during a recent visit by the President of Vietnam, the chief of the Presidency Office A. Bayarbaatar signed a memorandum of understanding for scientific cooperation on behalf of the academy. Currently, D. Enkhtüvshin, S. Erdenebat, and D. Regdel each retain the presidency of their respective organizations, as indicated by their messages on the official websites of these organizations. None of the organizations have relieved them or appointed successors, resulting in over three months of clear violations of Article 29.1 of the Constitution and Article 43.1.4 of the Law on the State Great Khural. The parliamentary office seems to have only recently "noticed" this issue, providing recommendations and notifications just now. There is no provision in Mongolian law stating that someone can simultaneously be "Member of Parliament and president of MNCCI," "Member of Parliament and president of CMTU," or "Member of Parliament and president of MAS." However, these three members currently hold such positions. The primary issue is that these three members were elected to parliament from the MPP's list, and it seems unlikely they will be recalled or relieved of their duties. If the parliamentary Ethics and Procedure Committee adheres to the law, this matter must be resolved immediately. However, the committee chairman B. Bayarbatar, who previously served as chairman of the MPP's Supervisory Committee, and committee members including former directors of other organizations, might not act. Given this context, questions arise on whether the MPP can recall its "presidential" members who are in violation of the Constitution. While the parliamentary office is connected to these members through procedural notifications, it only appears to act superficially to appease the ruling party. However, even as these members continue in breach, they were elected under the new 126-member parliament, operating under a new mixed electoral system after constitutional amendments. If such legal breaches persist among elected members, the legitimacy of parliamentary authority to enact laws will become increasingly difficult to uphold. Despite the overhaul in electoral systems after years of past criticism of the old 76-member format, such breaches point to a potential erosion of ethical and legal standards. Concluding, much speculation revolves around whether the MPP and the relevant parliamentary bodies will take actions to address these constitutional breaches among their ranks in the coming days.

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Local Elections Voting to Take Place on Friday

Published: 2024-10-07 | Translated from: itoim.mn

The regular elections for representatives of provincial and local councils in 2024 will be held on Friday. In the local elections, 12 parties and coalitions are competing, with 1,992 candidates vying for positions at the provincial and capital city level, and 15,283 candidates competing at the district and sub-district level. Friday is a public holiday, and voting will take place from 07:00 to 20:00. Voter registration will close at 20:00 on the day of the election, and only those who have obtained their registration slips before this time will be able to cast their votes. This local election is being organized in accordance with the Local Election Law of 2020, and there is no voter turnout threshold. However, it is important for citizens to actively participate as they are electing leaders who will govern their province, district, and locality for the next four years. In addition, voters will mark their votes on two ballots. One ballot will be for electing representatives to the provincial and capital city council, and the other will be for electing representatives to the district and sub-district council.

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Alcohol Sale Ban Due to Upcoming Elections

Published: 2024-10-07 | Translated from: gogo.mn

Due to the regional, provincial, and district council elections being held on October 11th, which falls on a Friday, the sale and service of alcoholic beverages will be prohibited from October 10th to 12th. Additionally, it is forbidden to sell or serve alcoholic beverages and to organize cultural, entertainment, sports, and other public events during this period. Shops and service centers operating indoor and outdoor activities will not be open. Article 70. Activities Prohibited on Election Day 70.1. The following activities are prohibited on election day, and the governors of the provinces and cities shall make the relevant decisions and monitor compliance: 70.1.1. Selling and serving alcoholic beverages.

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The party factions and working groups in Parliament will meet today

Published: 2024-10-07 | Translated from: isee.mn

Today, the MPP and DP factions in Parliament will meet to consolidate their positions on issues to be discussed at the permanent committee meetings this week. There will be no plenary sessions this week because the MPP faction has requested a five-day break to review the 2025 budget project. Therefore, only the Economic Standing Committee will meet for two days to prepare discussions on the draft resolution of the State Great Khural "On Approving the 2025 Development Plan of Mongolia." Several working groups will also meet to discuss issues such as proposing recommendations and drafts for laws related to regulating the use of mopeds, motorized vehicles, and scooters to ensure traffic safety, improving the legal framework for green finance to support urban housing, and other issues under the 2024 order No. 76 of the Parliament Speaker.

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The State Great Hural (Parliament) Session Will Not Be Held This Week Due to the Mongolian People's Party's Break

Published: 2024-10-07 | Translated from: isee.mn

Today, the groups (factions) of the Mongolian People's Party (MPP) and the Democratic Party (DP) in the State Great Hural (Parliament) are meeting to consolidate their positions on the issues to be discussed in the standing committees this week. However, there will be no parliament session this week. This is because the MPP group has taken a five-working-day break to work on the 2025 budget draft. Therefore, the sessions scheduled for October 10th and 11th will not be held.

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If Young People Don't Make Changes, There Will Be No Reform in Governance

Published: 2024-10-07 | Translated from: news.mn

If young people don't make changes, there will be no reform in governance. Money from taxpayers is often misused, embezzled, and the opportunities of young people are stolen. But young people are now courageously raising their voices and entering politics in large numbers to monitor and make changes. For example, in the capital city council, a young man named Tömör from the National Alliance is running in Khan-Uul district with the goal of overseeing the budget. Such young people, who have gained experience in various fields, must enter politics in large numbers for reform in governance to take place. E. Zolzaya, who is specialized in urban planning from the "Khün" party, and another representative from the Alliance, N. Enkhchimeg, who is well-educated, are examples of young women stepping in. As young citizens of the capital today, conversations often go like this: "After being stuck in traffic for three hours, my whole day's plans are ruined. It's gotten so bad that trying to cycle means risking my life to get hit by a car," or "I was excited because the government would purchase my product and my sales would really take off, but then some old bureaucrat imported something from elsewhere and snuffed out my hopes." The polluted air has been causing my child to cough all night long, so almost my entire salary goes to medicine. And just when I was about to get a promotion, some clueless party appointee jumped in and became my boss. This is how discussions among the young people of today unfold, and cursing has become part of even casual greetings, highlighting the reality of the society we live in. Our capital city Ulaanbaatar, nestled in the "Valley of Human Stones," doesn't even make it to the list of the most livable cities in the world. On the contrary, a survey by the prestigious German magazine "Spiegel" ranked it among the 25 most unfriendly cities to live in worldwide. Participants in the survey criticized our city as disorganized, noisy, dusty, with many homeless people, and nearly no sanitary facilities, constantly infringing on citizens' rights to a healthy and safe life. The reality is as follows: Roads are fenced off, making free movement impossible, there are no paths for cycling, public transportation is inadequate, and those with cars are stuck in traffic, wasting valuable time. This is the city we live in. Our constitution states the principle that an individual can conduct business, and the government should continually support it. This principle includes the right to succeed using any method of business outside of fraud, theft, or robbery. According to a survey conducted by the Mongolian Chambers of Commerce and Industry in the capital, over 200,000 young people who had done business expressed disinterest in continuing, saying "it's pointless because the government will just take over." The government has the power to alleviate the burden carried by the private sector, which shoulders economic weight. However, our government has been sluggish in providing conditions for conducting business without deviating from the line of a market economy. Thus, there is a need for young people to increase their political involvement in order to correct the systemic issues of doing business and the broken governance. Misusing taxpayer money, stealing opportunities from young people, and conducting fraudulent practices like coal theft and money laundering needs to be addressed. A young man from the National Alliance, Tömör, is running in Khan-Uul district to monitor the budget. With experience in investigating major economic crimes, he should be in the city council to prevent demotivating and opportunity-stealing actions against young people's interests. Young people, each with experience in their sectors, must enter politics in large numbers for governmental reform to happen. E. Zolzaya, who specialized in urban planning from the "Khün" party, and N. Enkhchimeg, a representative from the Alliance with a solid education, are also part of this change. One of the foundations for a good life is a sufficient income, allowing economic freedom and meeting one's needs. Excelling in one's profession and consistently growing is also part of a good life. But what if one morning a person wakes up to find an uninformed party appointee occupying their promotion spot? This is a systemic flaw in our governance. "Even if you're not interested in politics, politics will deal with you," resonates here. Should young people just sit idly by and watch these events unfold? That's why young people should be interested in politics and actively participate in governmental reform. To ensure that our future generations don't live in the disturbed and flawed environment and circumstances we have today, the steps we need to take are clear. "Waiting for prior generations to pass before society improves" is unhelpful. Instead, we should actively strive to save our city. Young people need to understand this well today. We are citizens of a new century, a new world. Why should we rely on outdated methods and wait for decisions by people who haven't moved on from the previous century, regarding government operations, decision-making processes, and solving pressing city issues? Why can't we aim for governance that fosters technological advancements and creates a better living environment, like other countries do? We deserve to live and work in cities and towns similar to those where people around the world live good lives. We have such potential. Let's aspire and participate in politics with such dreams and desires. In the words of Harry Kremp: Poverty is not the lack of money, but the lack of dreams.

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Economy

What are the benefits of the Wealth Fund Law for citizens?

Published: 2024-10-07 | Translated from: news.mn

The Wealth Fund Law allows citizens to directly benefit from the returns of strategic deposits through savings accounts instead of the state. In other words, every Mongolian citizen now has the opportunity to gain from natural resources and spend their savings on housing, health, and education. So, what benefits does the Wealth Fund Law bring to the public? The concept of a wealth fund is about distributing natural resources equitably. This means that every citizen of Mongolia is now able to benefit from and accumulate returns from their natural resources. For many years, natural resources have ended up in the "pockets" of a few people. Therefore, to ensure the fair distribution of natural resources to all citizens, 1,072 shares of "Erdenes Tavantolgoi" were distributed to each citizen. However, these 1,072 shares have proven to be minimally beneficial to the citizens. The Wealth Fund Law allows profits from natural resources to be evenly accessible to every citizen, accumulating directly in citizens’ accounts. It also provides the opportunity to invest excess budget income into large development projects rather than distributing it equally. By establishing a legal framework, this law guarantees that every citizen can share in the wealth of their homeland and utilize it as they see fit. Specifically, 34% of the strategic deposits under "Erdenes Mongol" (including Erdenet Mining Corporation, "Erdenes Oyu Tolgoi", and future deposits) will be centralized into a unified savings fund, enabling citizens to spend on housing, education, and healthcare. The fundamental principle of the Constitution is that natural resources should not belong to a few but benefit all citizens. Thus, mining companies that were awarded extensive mineral licenses over the years are transitioning to public shareholder governance, allowing people to hold ownership and enjoy rights to national wealth. This law also addresses the income inequality created over the past 30 years by providing a realistic assessment of natural resources, urban land, and privatization, aiming to ensure that economic growth reaches all families as a form of anti-corruption effort. With the Wealth Fund Law enacted and implemented from May 1, 2024: The 49% public ownership of "Erdenet Mining Corporation" will be realized. The $2.3 billion loan of "Oyu Tolgoi" will be paid off. "Erdenes Tavantolgoi" company will operate profitably and start distributing dividends, creating a historic opportunity to form a National Wealth Fund. Moreover, the national housing program is revitalized. Initially, MNT 1.2 trillion will be collected, allowing 10,000 households to avail mortgage loans. A housing program will be implemented in collaboration with Singapore through the "Savings Fund." Granting every citizen access to natural resources does not mean dividing mining revenue equally among everyone. Instead, it is about utilizing natural resources efficiently. Furthermore, this is not a socialist policy aimed at eliminating the gap between rich and poor. Rather, it is a policy that invests in addressing social issues and enhancing citizens' health and education. Let us amend the situation where a few families enjoy the cream of underground wealth while the majority receive only the crumbs.

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S&P Agency: Development Bank Set to Gradually Resume Policy Lending in the Coming Years

Published: 2024-10-07 | Translated from: ikon.mn

Presenting the overview of the Development Bank. Mongolia's credit rating was raised from level B to B+. The Development Bank, which is 100% state-owned, serves as the only policy bank implementing the roles of a development and export-import bank, and thus its credit rating is aligned with Mongolia's sovereign rating. The long-term credit rating of the Development Bank was upgraded from B- to B+. The bank's credit outlook is in line with Mongolia's economic outlook. International credit rating agency S&P Global upgraded Mongolia's Development Bank's long-term credit rating to B+ and assessed the rating outlook as positive. Additionally, the bank’s short-term credit rating was affirmed at level B. The decision to upgrade the rating is primarily related to the improvement in Mongolia's credit rating. Furthermore, S&P Global noted that since the Development Bank is owned by the government, there is a high likelihood of receiving extraordinary support if necessary. The report emphasized that the Development Bank is expected to continue supporting Mongolia’s economic growth and stability. The Development Bank is described as a key institution financing crucial projects necessary for economic development and export-driven sectors. The bank allocates at least 60% of its total loans to support export-oriented sectors such as mining, agriculture, and transportation. While currently focusing on accelerating loan repayments and monetizing assets that have transferred to bank ownership, the bank is expected to gradually resume policy lending in the coming years. Moreover, S&P Global's report noted that since the Development Bank implements the government’s strategic policies, it is considered an integral part of the state and cannot be separated from governmental functions.

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N. Enkhbayar: Economic Expansion May Lead to Crises Similar to 2012 and 2016 Due to Budget Expansion

Published: 2024-10-07 | Translated from: itoim.mn

We spoke with N. Enkhbayar, the chairman of the Fiscal Stability Council and an economist, about the challenges surrounding the economic difficulties related to the upcoming 2025 budget. - The government anticipates an 8% economic growth next year. How realistic is this estimation? - Since the post-COVID period, Mongolia's economic growth has been relatively stable with a high growth rate of 5-7% over the last three years. As of the first half of this year, we have achieved 5.6% growth. It seems that next year's economic growth will maintain the current trend or perhaps even exceed it. Various predictions exist. For instance, the recent forecast by the Asian Development Bank suggests Mongolia's economic growth at 6% next year. The World Bank and the International Monetary Fund have also made similar estimates. The Mongolbank considers it to be fluctuating, estimating it at 5-7%. However, the government has proposed a budget to parliament for the next year estimating the growth at 8%. This estimation is based on real growth at constant prices. GDP has different measures, such as constant and current prices. Therefore, if the 8% growth at constant prices is converted to current prices, it results in a significantly higher growth rate. Our position on this matter is somewhat different. By law, the Fiscal Stability Council bases its macroeconomic forecast calculations on the next three years' budget framework, prepared every March for 2025. According to our calculations, the 8% prediction is overly optimistic, with a more realistic estimate falling between 6% and 6.5%. The government attributes its 8% forecast to the growth within the mining sector, specifically the increased underground extraction at Oyu Tolgoi. However, there are significant risks involved. Mongolia's exports are 92% raw materials. These raw materials are sold to two primary markets: nearly 88% to China and molybdenum concentrates to South Korea. Our exports total around $15-16 billion, with $14 billion comprising raw materials. It's important to realize that among China's 33 provinces, our raw materials are essentially being supplied to just one of them. This means we're taking profits from $14 billion worth of exports from just one province. Various risks can arise in that province. Despite our efforts to maintain raw material exports and enhance border connectivity, practical issues arise at the ground level. Recently, discussions have surfaced in China regarding its economic slowdown, driven by property issues and youth unemployment, along with geopolitical concerns. The third congress of the Communist Party of China has been addressing their economic slowdown issues. A policy document with over 30 pages has been issued addressing these challenges. The IMF also projects China's future economic growth to be below 5%. Our optimistic forecasts diverge from these realities. External economic conditions beyond our control warn that revenues from raw materials exporting may decrease. - The coalition government plans to implement 14 mega-projects starting next year. These projects are largely dependent on external loans and aid rather than the state budget. How do you view this? - With the formation of the new government, there is significant discussion about major construction projects. According to Mongolia’s Development Policy and Planning Law, passed in 2020, development policy should be planned in stages. The timeline allocations are not aligned with these projects. A 5-year plan should address which projects will be initiated and when. These should later be reflected in government programs. With development planning, they should be included in yearly plans. First, identify which projects, then decide who will implement them, and finally, consider the sources of funding. For example, a steel plant or a thermal power plant might be constructed without involving the state budget. That's included in the development plan. What role will the state play, and what projects will the government fund? These issues should be considered in the budget. Currently, however, there is confusion between the project discussions following the approval of the government's program. For instance, after discussing 14 projects, their nature has been explained to include over ten macro-projects. These have no real connection to the budget. Ideally, the projects to be approved by parliament now should have been part of the 2025 plan, set for approval in the spring. These issues would have been part of that plan. The current budget discussions deviate from this. If these projects are to be implemented by the private sector, the government's role should be clear. According to the State Property Committee's asset balance sheet, state-owned properties constitute over 80% of GDP. This includes not only the state property, agencies, but also all government-funded hospitals, schools, roads, and so forth representing enormous value. Yet, additional state investment is proposed. This does not conform well with Mongolia's development policy. Even if the government's programs and political promises include state property participation, listed in the Constitution, should focus on a multi-faceted economy. In terms of what is crucial today, it pertains to oil refineries, thermal power stations, or major road projects. Without government involvement, private companies will compete, searching for funds. Sources of funds can be domestic or international. Seeking international funding necessitates the involvement of international banks and development banks. This approach will foster the development of Mongolia's financial market, promoting private sector growth. Our project selection should be based on long-term planning rather than a mere availability of funds enabling government-led projects. We need to be more forward-thinking and plan accordingly. - The 2024 budget revision added nearly 3 trillion MNT in expenses, resulting in an overly expansive approved amendment. How will budget expansion affect economic stability? - Given Mongolia's resource-based economy, we need to approach this carefully. If our economy were more industrialized or service-driven like Southeast Asia, such concerns would be relatively minimal. However, over 20% of our economy relies on the mining sector, contributing over 30% to the fiscal revenue. We have not yet exited this cycle. Our major concern is the external economic environment; the favorable growth we’ve experienced in recent years due to high raw material exports may have peaked. The government, however, predicts additional growth next year. Any disruption could plunge us into crises akin to those of 2012 and 2016. This is why we must be prepared, avoiding economic expansion that may stifle private sector opportunities and bring numerous negative consequences. Thus, accurately predicting economic scenarios is paramount. We can't simply rely on optimistic forecasts. - The Fiscal Stability Law has been altered several times. What are its advantages and disadvantages? - There are two elements: the Fiscal Stability Law and the medium-term fiscal framework statement that accompanies the annual budget submitted by the government. The medium-term fiscal framework statement stipulates nine indicators not to be exceeded; it sets limits. The recent amendments in 2023 and 2024 to the Fiscal Stability Law have secured the fiscal stability's independence from government influence, positioning it under parliamentary oversight. This is beneficial. The second issue concerns revising the medium-term fiscal framework statement, setting limits for the next three years. However, these limits are frequently changed. In the spring, it limited Mongolia's fiscal expenditure for 2025 to 34-35% of GDP. However, the current budget proposal suggests fiscal expenditure up to 37-38%, with a total expenditure of 36 trillion MNT. This indicates a shift just three months later. The legal aspect asserts that the spring resolutions of the National Assembly remain valid, hence this is inconsistent with them. Legally and economically, such actions should be taken within the existing law, according to the limitations set by the approved budgetary program. Yet we're now setting limits based on unapproved assumptions, leading with a total fiscal expenditure proposition that hasn’t been passed. In terms of legislation, this is unauthorized. When submitted to parliament, it should have been addressed cautiously, with parliament stating, “The 2025 budget fails to meet legal requirements, violating the boundaries set in spring.” However, since it was submitted together, caution was neglected, accepting it with the proviso that future boundary adjustments will be restricted by legislation introduced last year, barring closely-spaced adjustments from 2025 onward. - What are the common mistakes in budget approval by our government? Are they evident in this government? - Our nation faces significant planning issues. These issues were clearly specified in the 2020 Development Policy, Planning, and Management Law. There is a long-term development policy. Following it should come the comprehensive population settlement plan, delineating where factories, cities will be, and which roads are important. All frameworks should be comprehensive. Departments shouldn't operate independently without consideration of holistic planning. This is why the error surrounding the Khushig Valley airport occurred. Due to uncoordinated planning, despite the Japanese project constructing the airport terminal and utilities, we could not build the access roads and other infrastructure for two years. Consequently, mistakes in planning inflate the construction costs and extend timelines, similar to issues faced with the Darkhan road. Hence, strong adherence to medium and long-term planning is essential. Adding topics not included in planning due to perceived importance is inappropriate. Moreover, topics included in medium-term year plans, such as annual road, rail plans, should not disappear next year; they should remain consistent. - How do you view the allocation of investment in the 2025 budget? - Following the formation of a coalition government, ambitious objectives have been set. This is acceptable. However, these should align with previously approved laws and plans. Reviewing the 2025 plan reveals an investment list spanning 32 pages. Previous years’ investments averaged around 10 pages, maybe 20 in total. Why is it now 32 pages? Is it due to more projects because of increased funds? Consequently, the legal framework governing investments is inadequate. Other countries rely on separate laws for public investment, categorized by level: national, provincial, departmental, regional, municipal. Clear demarcations mean small projects like village roads or cultural centers need not be deliberated at the national level. Due to undefined legal separation, the 2025 budget includes both small projects costing a billion MNT and large projects costing 100 to 200 billion MNT, mixing mega, nano, mini projects. Without legal ranking and separation, disorganization ensues. Additionally, projects are often criticized for overlapping government member-specific budgets. Mixing small and large projects diminishes the importance of big projects, leading to insufficient funding sources. Ranking and clarification are needed. - Thank you for the interview.

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Online Shopping Wave: Who Benefits and Who Falls Behind

Published: 2024-10-07 | Translated from: itoim.mn

For over 30 years, markets like Naran Tuul, Kharkhorin, and Bumbugur, as well as traditional large stores, have been the central points of trade for the people of Mongolia. However, with the rapid development of e-commerce worldwide, the question arises as to how long traditional stores and markets can continue operating. In particular, the changes observed globally in recent years indicate that e-commerce is significantly impacting and transforming the existence of traditional stores. Large retailers like Toys "R" Us, Sears, and Blockbuster are closing or reducing their number of outlets to move towards an online retail system, as seen by the daily increase in users of Amazon and eBay, which hold significant positions in the global economy. Most consumer goods in Mongolia are supplied by small and medium business owners, commonly referred to as vendors. Although these business owners contribute significantly to society by providing a wide range of products to meet people’s needs, the price increase on goods is high. It is common for the price of goods from Erenhot to double once they reach Mongolia, adversely affecting consumers' purchasing power. There are many factors contributing to the price increase of imported goods, including transportation costs, customs duties, store rentals, employee salaries, and VAT. Although it is not fair to blame vendors for this situation, the situation directly impacts consumers' wallets and creates difficulties for household real income. In recent years, research has shown that the e-commerce market in China and worldwide has grown rapidly. For instance, e-commerce growth in China has averaged 15% over the past five years, demonstrating the powerful development of the industry. Giant online platforms like Alibaba, Taobao, and JD provide consumers with low-cost goods delivered directly to their homes, reducing traditional trade costs. Therefore, according to the market principle, e-commerce will undoubtedly change the landscape of traditional trading in Mongolia. As e-commerce platforms enter the Mongolian market, consumers will be able to order cheaper goods online from their homes. These orders can be delivered to their homes within 5-7 days, along with the excellent services provided by major e-commerce sites. Especially problems that have persisted in the Mongolian market, such as returning or exchanging products, will be comprehensively addressed. These platforms will also offer significant opportunities for Mongolian small and medium businesses to use them to access the global market. Especially, producers of products highlighting Mongolia's unique characteristics will have the opportunity to expand and develop by offering high-quality and unique products to the global market based on e-commerce infrastructure. As consumers have the opportunity to purchase a wide variety of products more affordably and easily, household real income and purchasing power will improve, increasing economic efficiency. As e-commerce platforms expand, transport, logistics, and payment companies will also encounter substantial opportunities. For example, consumers need an integrated delivery system to receive products swiftly, and a few competitive companies with the best technology are inevitably going to occupy this space. Therefore, it is becoming inevitable to see the future of trade not as shops or markets but more as numerous e-commerce sites. However, taking advantage of this transition and opportunity to sell products showcasing our uniqueness worldwide represents a huge advantage. In conjunction with e-commerce, transport and delivery companies will flourish, and services such as drone delivery might soon become widespread in Mongolia. If you need reliable and prompt delivery, contact UBCab Express.

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The Minimum Wage Will Be Raised to 792,000 MNT

Published: 2024-10-07 | Translated from: news.mn

It has been decided to raise the minimum wage to 792,000 MNT starting from April 1, 2025. Specifically, this decision was made at the meeting of the National Committee for Labor and Social Partnership, which includes the Ministry of Family, Labor, and Social Protection, the Confederation of Mongolian Trade Unions, and the Mongolian Employers' Federation. Currently, the minimum wage is 660,000 MNT. The decision has been made to increase this amount by 20%. Additionally, there is a proposal to raise the minimum wage to 1 million MNT starting from 2026. The Minister of Family, Labor, and Social Protection has stated that moving forward, salaries will increase in line with productivity.

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Increasing Budget Deficits and Initiating Many Mega Projects is Risky

Published: 2024-10-07 | Translated from: news.mn

The government has drafted the 2025 budget with revenues expected to be 33.9 trillion MNT and expenditures set at 35.8 trillion MNT, and has submitted it to the State Great Khural (Parliament). The 2025 budget will be discussed and approved during the autumn session. We talked with Dr. D. Oyunbadam, the governance program manager and researcher at the Open Society Forum, about next year's state budget. - The government submitted the 2025 budget draft to the State Great Khural. What is your stance on next year’s budget? - The budget deficit for 2025 is set to be 1.9 trillion MNT, equivalent to two percent of the gross domestic product. This deficit needs to be reduced. According to the budget proposal, we will pay 1.3 trillion MNT for interest and service fees this year. Thus, the debt burden from high-interest bonds is increasing, and this brings the risk of high mortgage servicing costs to the budget. Looking at the investments included in the budget, it seems that the technical and economic efficiency of certain projects needs to be closely examined. Next year, 38 new investment projects are being introduced, 14 of which are mega projects. The rest are other investment projects. For example, 19 road projects are planned to be financed with 641 billion MNT. Considering the roads, for example, in tourism directions such as Amarbaysgalant monastery and Ugii Lake, is it necessary to set up roads during a budget deficit? There should be a calculation and presentation of how effective and economically beneficial these and other directions are when reconstructed roads are laid. The information on the priority, date, and socio-economic impact of the investment projects has not been disclosed, so detailed information on the importance of the projects to be implemented is scarce. This information needs to be urgently made public. The Ministry of Finance has been stating that in the last 2-3 years, investment projects have been ranked and scored based on importance using a special program. However, this ranking information has not been disclosed. In other words, it should be important why a project ranked first is prioritized over a project ranked fifth. Therefore, I would like to request that these evaluations, results, and calculations be made public. It is appropriate to provide detailed information on the projects included in the budget to the State Great Khural members and the public and to hold discussions. - The budget is expanding every year. Are the outcomes reflecting in society and the economy? - There are very few new projects starting next year. The 2024 budget envisaged initiating many new projects, so no new projects have been introduced this year. However, publishing the efficiency information of investment projects before implementing them will determine whether the project is truly beneficial. This applies to road projects as well, depending on traffic volume and projected economic benefits. With detailed insights, the state budget can be spent efficiently. We need to present the efficiency, current status, and future plans of the project comprehensively when seeking loans from foreign countries to obtain loans, aid, and financing from foreign governments. However, the projects submitted to the State Great Khural only have information on their name, location, and implementation time without a detailed introduction. No additional information is given. To spend the state budget effectively, it is important for the whole country to discuss and decide on what construction investments will be made next year. "ALTHOUGH IT IS SAID TO DIVERSIFY THE ECONOMY, IT IS ONLY INCREASING DEPENDENCE ON MINING, WHICH IS NOT OPTIMAL" - What do you suggest about improving budget spending? - New software and electronic programs are being extensively introduced in current expenses. The government should thoroughly examine whether this allows for the reduction of civil servant numbers, etc. Looking at procurement operations from electronic sites, there are large expenses for software. Therefore, it is necessary to evaluate whether the number of civil servants is reduced due to these and how to calculate cost savings. Regarding investment projects, road constructions to ports and connecting provincial centers are planned. Although it is stated that the economy should be diversified, should we only increase mining dependency and enhance the capacity of ports exporting mining raw materials? There is a statistic that 70 million tons of coal are currently handled by existing ports. Whether there is a need to further increase this capacity should be carefully examined. By further opening new ports, will the export of mining products increase again? If diversifying the economy is the goal, more attention should focus on job creation and supporting businesses. Allocating most of the budget to roads is not optimal. - The government is aiming to implement major mega projects. What should be considered for successful implementation? - The Finance Minister gave a presentation. During the discussion, it was not decided whether some projects would be financed with foreign investment or as public-private partnerships. For example, the Cable-Stayed Bridge project, requiring 2.8 trillion, should be introduced to foreign investors first. If there is no response, a public-private partnership should develop the feasibility study. It is not ideal to set up a high amount of financing and conduct a feasibility study without clarity on project implementation. - Accelerating projects in roads, energy, infrastructure, housing, and tourism is said to have long-term socio-economic impacts, isn't it? - In terms of tourism, Mongolia has not run out of tourists in recent years. As we all know, the basic requirement for developing tourism is sanitation facilities. Without solving these basic problems, it is not beneficial to take on large loans by connecting all provincial centers with roads in today’s budget deficit situation. Laying roads primarily affecting the economy is essential. - The 2025 budget is formulated with the characteristic of initiating infrastructure recovery based on regional development. Is there any missing content here? - As stated, the main point is if it is necessary to initiate mega projects simultaneously. For example, the infrastructure facilities of Khushig Valley, the comprehensive program for housing civil servants, and the feasibility study of Kharkhorum city are included in the 2025 budget. Many investment studies for major projects, such as the feasibility study for Kharkhorum, are mentioned. Whether it is necessary to do Kharkhorum next year even if the budget deficit is reduced overall is the question. - As the budget expands, government involvement increases. Could we see the space for the private sector shrinking? - Government involvement in the economy is on the rise. In general, supporting the private sector regarding taxes is appropriate. On the other hand, attention should be paid to the implementation of decisions made at the upper level at the middle and lower levels. To support the economy, it is necessary to simplify business licensing and reduce the number of required permits. In observing the operations of businesses, regulatory pressure remains on them. Developed countries prioritize supporting citizens and businesses. Citizens can carry out business operations without obstruction. However, in Mongolia, even for a citizen operating a business on their land, difficulties arise. Removing these barriers can expand the economy. Consideration should be given to how easy it can be for citizens and businesses to operate legally and freely. - With the large amounts of money supplied to the market, is there a possibility of increasing inflation? - As included in the budget for next year, salaries and pensions will be increased by six percent for civil servants. Of course, inflation will rise due to this. The government uses methods like keeping energy prices stable and reducing import duties on gasoline and fuel to stabilize prices. However, if these methods are not applied, inflation will naturally increase. With an increase in money supply, inflation will follow. Therefore, it seems necessary to reduce the budget deficit and decrease foreign borrowing.

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European Bank for Reconstruction and Development provides €2.3 billion financing for around 140 projects

Published: 2024-10-07 | Translated from: montsame.mn

The President of Mongolia, U. Khurelsukh, met with Odile Renaud-Basso, President of the European Bank for Reconstruction and Development. President U. Khurelsukh expressed gratitude for the €2.3 billion financing in the form of loans and investments provided by the European Bank for Reconstruction and Development over the past 18 years for approximately 140 projects. The financing has made a valuable contribution to the social and economic development, especially in the mining, banking, finance, health, roads, transport, renewable energy, small and medium businesses, and private sector fields. Odile Renaud-Basso, President of the European Bank for Reconstruction and Development, briefly introduced the projects and programs implemented by the bank. She expressed readiness to continue cooperation under projects and programs aimed at greening and diversifying the economy. The bank intends to increase its investments in the banking sector, focus on infrastructure, renewable energy, and the green development of the capital city, and support young entrepreneurs. Odile Renaud-Basso highlighted the bank's readiness to fully cooperate within the national movements "One Billion Trees" and "Food Supply and Security" initiated by the President.

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The Rise of Online Shopping: Who Benefits and Who Falls Behind

Published: 2024-10-07 | Translated from: itoim.mn

For over 30 years, markets like Narantuul, Kharkhorin, and Bombogor, as well as traditional large stores, have been the central points of commerce for the Mongolian people. However, with the rapid development of e-commerce worldwide, the question arises: how long will these traditional shops and markets continue their operations? Especially considering the changes observed internationally in recent years, e-commerce is significantly impacting the survival of traditional stores, bringing about changes. As the number of users on major platforms like Amazon and eBay, which occupy a significant position in the global economy, continues to grow daily, it can be linked to the fact that large traditional stores like Toys "R" Us, Sears, and Blockbuster are closing down or reducing their branches to shift to online retail systems. Most consumer products in Mongolia are supplied by small and medium business owners, or as we commonly call them, traders. Although these business owners contribute greatly to society by providing a wide selection of goods and meeting consumer needs, the price markup on products is high. It is common for products priced in Erlian to double in price by the time they reach Mongolia, negatively affecting consumers' purchasing power. Many factors influence the increase in the price of imported goods. These include transportation costs, customs duties, store rentals, employee salaries, and value-added taxes. While it is unsuitable to blame the traders entirely for this situation, it ultimately impacts consumers' pockets and creates financial difficulties for households. Recent studies show that the e-commerce market has grown rapidly in China and worldwide in recent years. For instance, the average growth rate of China's e-commerce sector was 15% over the past five years, showcasing the sector's robust development. Giant e-commerce platforms like Alibaba, Taobao, and JD are offering low-priced goods with delivery service directly to consumers' homes, reducing traditional commerce expenses. Therefore, it is inevitable that, following the market principles, e-commerce will alter the landscape of traditional commerce in Mongolia. As these e-commerce platforms enter the Mongolian market, consumers will be able to order affordable products online from the comfort of their homes. The ordered goods will be delivered to their doorstep within just 5-7 days, alongside the best services offered by major online shopping sites. These platforms will especially address the perennial issues in the Mongolian market, such as returns and exchanges, comprehensively. The introduction of these sites also brings another advantage, offering Mongolian small and medium businesses great opportunities to enter the global market using these e-commerce platforms. Manufacturers of distinctive Mongolian products, in particular, can leverage the e-commerce infrastructure to offer high-quality, unique products on the global stage and grow. As consumers gain easier and cheaper access to a wide range of products, household real income and purchasing power will improve, enhancing economic efficiency. Additionally, as e-commerce platforms expand, significant opportunities will open up for transport, logistics, and payment companies. For instance, a unified delivery system utilizing the best technology will be necessary to ensure timely delivery of goods to consumers, and a few competitive companies are certain to occupy this space. Therefore, we must view the future of commerce not as shops and markets but as numerous e-commerce sites. However, by leveraging this transition and new opportunities, we can capitalize on showcasing our unique products to the world. Additionally, as related services like transport and delivery flourish due to e-commerce, services like drone delivery may soon become widespread in Mongolia. For reliable and fast delivery, contact UBCab Express.

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Minimum Wage to Increase to 792,000 MNT Starting April 2025

Published: 2024-10-07 | Translated from: gogo.mn

The Ministry of Labor and Social Protection, the Confederation of Mongolian Trade Unions, and the National Committee for Labor and Social Partnership held a meeting. During the meeting, a decision was made to increase the minimum wage by 20% to 792,000 MNT starting April 1, 2025. Currently, the minimum wage is 660,000 MNT. This amount is insufficient to cover the living expenses of a single person. Therefore, the committee members fully supported the decision to increase the minimum wage by 20% to 792,000 MNT starting April 1, 2025. In addition, a proposal was made to raise the minimum wage to 1 million MNT from 2026. Source: Ministry of Labor and Social Protection

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Import Cement Tax Returns to 20 Percent

Published: 2024-10-07 | Translated from: itoim.mn

The import tax on cement, which was 20 percent, was reduced to five percent last May. However, starting from October 1, the cement tax has been reverted back to 20 percent. The reason for reducing the cement tax was explained as the local cement factories in our country were insufficiently supplied with raw materials and fuel, which created conditions for a potential shortage of cement needed for construction projects this year. But starting from October 1, the cement tax has been increased back to 20 percent. Approximately 12 percent of the cement consumption is imported, and in the first half of this year, 146 thousand tons of cement were imported. Last August, the Ministry of Urban Development, Construction and Housing conducted inspections related to the reduction of the cement import tax, and found that the imported cement lacked certificates of origin and quality. Specifically, a working group conducted tests on six samples of imported cement from China using independent professional laboratories to assess the 3-day and 28-day flexural strength standards and other physical-mechanical analyses. A total of cement samples of grade 42.5 were inspected, out of which three samples did not meet the 42.5 strength criteria. The standards allow a minimum value of -2.5, or strength of 40 MPa. Furthermore, the imported cement was found lacking certificates of origin, laboratory test documents, and quality certificates. Currently, there are a total of seven cement factories operating in Mongolia, with a total capacity to produce 4.5 million tons of cement per year. Meanwhile, the annual cement consumption of the country is 2.3 million tons. In other words, even if total consumption doubles, local factories are capable of fully meeting the market's demand with cement.

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The Tide of Online Commerce: Who Benefits and Who Falls Behind?

Published: 2024-10-07 | Translated from: itoim.mn

For over 30 years, markets like Naran Tuul, Kharkhorin, and Bumbugur, along with traditional large stores, have been central to commerce among the people of Mongolia. However, as e-commerce rapidly expands worldwide, the question arises: how much longer can traditional market and store operations endure? Particularly observing recent trends globally, e-commerce exerts a significant influence, bringing changes that challenge the survival of traditional shops. With the number of consumers on major platforms like Amazon and eBay growing daily, traditional retailers like Toys "R" Us, Sears, and Blockbuster are closing stores or transitioning towards an online retail system. Indeed, the majority of consumer goods in Mongolia are supplied by small to medium businesses, commonly known as traders. While these businesses play a valuable role in society by offering a wide selection of goods to meet people's needs, the markup on these goods is often high. It's not uncommon for prices of goods from Erenhot to double by the time they reach Mongolia, negatively impacting consumer purchasing power. The increase in prices for imported goods is influenced by various factors: transportation costs, customs duties, shop rental fees, employee salaries, and value-added taxes. Although it might not be fair to blame traders for these circumstances, inevitably they have a direct impact on consumers' pockets and place a burden on household real income. Recent studies reveal that the e-commerce market has experienced powerful growth in China and globally. For example, in the past 5 years, China's e-commerce growth has averaged 15% annually, demonstrating this sector's robust development. Giant online platforms like Alibaba, Taobao, and JD provide consumers with affordable products delivered straight to their homes, reducing traditional retail costs. Following market principles, online commerce is inevitably transforming Mongolia’s traditional trade landscape. With these e-commerce platforms entering the Mongolian market, consumers will be able to conveniently order affordable products online from home. The ordered goods can be delivered within just 5-7 days, with the best services offered by major online shopping sites also becoming available. Especially in Mongolia, where issues like product returns and exchanges have long persisted, comprehensive solutions to these problems are sure to emerge. When these sites become available, another advantage they bring is the great opportunity for small and medium Mongolian businesses to export their goods to the global market using these trade platforms. Manufacturers highlighting Mongolian uniqueness can leverage the e-commerce infrastructure to offer high-quality, unique products to the world market, thereby fostering growth and development. Facilitating the purchase of diverse products more cheaply and easily enhances household real income and purchasing power, increasing economic efficiency. As e-commerce platforms expand, transportation, logistics, and payment processing companies also find immense opportunities. Notably, an integrated delivery system that ensures timely product delivery to customers will be needed, where only a few highly competitive companies using the best technology are likely to dominate. Therefore, rather than viewing the future of commerce through the lens of stores and markets, it's essential to see it in terms of numerous e-commerce sites. Successfully leveraging this transition and new opportunities to export products that showcase our uniqueness to the world market will establish a significant competitive advantage. Moreover, with e-commerce, transportation and delivery companies are likely to flourish, potentially seeing widespread services such as drone delivery introduce in Mongolia sooner than expected. If you need reliable and fast delivery, contact UBCab Express.

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Diplomacy

Russian Minister of Science and Higher Education Visits Our Country

Published: 2024-10-07 | Translated from: gogo.mn

Deputy Prime Minister and head of the Mongolian side of the Mongolian-Russian Intergovernmental Commission, S. Amarsaikhan, met with V.N. Falkov, the Minister of Science and Higher Education of the Russian Federation. At the beginning of the meeting, the Deputy Prime Minister said, "During the visit of the President of the Russian Federation V.V. Putin, we discussed expanding and developing cooperation between the two countries in education, science, and other sectors. As the head of the Mongolian side of the Mongolian-Russian Intergovernmental Commission, I closely collaborate with A.A. Kozlov, Minister of Natural Resources and Ecology and head of the Russian side of the Commission. We plan to hold the 26th meeting of the Commission this year to exchange opinions on implementing the measures proposed following President V.V. Putin's visit, as well as to operationalize the issues discussed during the previous meeting of the Commission." The government plans to implement 14 mega projects over the next four years. Efforts are being made to prepare personnel in the fields of energy, railways, road transport, environment, oil, gas pipelines, natural gas, and food and agriculture, and to increase the number of trainees. Our country has a rich history of preparing researchers and scientists in the fields of energy, oil, and road transport in Russia. We express gratitude for the opportunity to send students and young people to study in Russia in high-demand professions in Mongolia and for offering the chance for young Mongolians to study in these fields in their own country.

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Kim Jong Un Threatens to Use Nuclear Weapons

Published: 2024-10-07 | Translated from: news.mn

South Korean President Yoon Suk Yeol stated, "The day North Korea uses nuclear weapons, Kim Jong Un's regime will be destroyed." The leader of North Korea condemned this and threatened that there would be no choice but to use nuclear weapons if South Korea intervenes in Pyongyang's affairs. During a visit to an army base in the western part of North Korea, Kim Jong Un said, "If the South encroaches on the North's sovereignty, Pyongyang will use all its offensive forces, including nuclear weapons, without hesitation." He also emphasized, "If such a situation arises, Seoul and South Korea will not be able to maintain permanent existence." A fierce dispute has erupted between the leaders of the two Koreas, as Pyongyang intensifies its efforts to enhance nuclear production and strengthen relations with Russia while opposing Western sanctions. This statement from Kim Jong Un came after Yoon Suk Yeol showcased his country’s most powerful weapons to the public last Tuesday. Since the end of the Korean War in 1953, North and South Korea have severed communication links. Although an armistice was signed at the time to halt the war, both countries remain in a state of military readiness to this day.

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Infrastructure

The Importance of the European Bank for Reconstruction and Development's Support for Implementing 14 Mega Projects

Published: 2024-10-07 | Translated from: gogo.mn

Prime Minister L. Oyun-Erdene met with Odile Renaud-Basso, President of the European Bank for Reconstruction and Development, to exchange views on cooperation issues. The Prime Minister expressed gratitude to the European Bank for Reconstruction and Development for its instrumental role in contributing to the development of the private sector, which has become a cornerstone of the country's economy, during the 18 years since the bank began operations in Mongolia. The European Bank for Reconstruction and Development has provided a total of $2.3 billion in financing in the form of loans and investments for 140 projects in Mongolia, significantly impacting the diversification of the private sector. The coalition government is working to implement 14 mega projects in its program of actions to stabilize economic growth. Most of these projects will be implemented in the mining, energy, and infrastructure sectors, emphasizing the importance of the European Bank for Reconstruction and Development's experience and support in areas such as energy reform, renewable energy, green transition, satellite cities, infrastructure issues, and improving the investment environment. Odile Renaud-Basso, President of the European Bank for Reconstruction and Development, expressed gratitude for being received by the Prime Minister of Mongolia and appreciated the vigorous economic growth Mongolia has experienced in recent years. She expressed interest in working together in fields such as health and energy, especially renewable energy projects, and improving the banking and financial environments.

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Baganuur Battery Storage Plant to be Commissioned Before Peak Winter Load

Published: 2024-10-07 | Translated from: gogo.mn

Construction of the battery storage plant with a capacity of 50 MW/200 MWh, located on 5 hectares in the territory of Baganuur District's 1st khoroo, utilizing the "Baganuur" electricity distribution substation, is progressing successfully. As part of the government's energy revival initiative, the Prime Minister of Mongolia, L. Oyun-Erdene, became familiar with the progress of this project implemented by the Governor's Office of the capital city. The contract for establishing this plant was signed on the 6th of the previous month, and it is planned to be operational by November 30, before the peak winter energy load. Earthworks have been completed, and foundation works are ongoing. Since Baganuur District is the main hub for providing energy to the central and eastern regions, once this battery storage plant is operational, it will enable frequency regulation of the central region's energy system and alleviate the peak winter load. It will also mitigate capacity shortages in the system with environmentally friendly green energy sources. Excess energy produced at night can be stored and fed back into the central system during peak daytime load, creating a regulation system. The Governor of the capital city, Kh. Nyambaatar, explained the future plans to connect the battery storage plant to renewable energy sources to the Prime Minister. The development will include completion of the battery plant, substation, overhead transmission lines, and expansion of the Baganuur substation. The first part of the energy storage battery has entered through Mongolia's border and installation work has begun. Battery storage plants can be installed in a shorter time compared to other renewable energy plants. Industry experts highlighted that with regular maintenance, a battery plant can function for more than 20 years. The main contractor for the battery storage plant is China's leading "Envision Energy," with the local "Monhorus International" as a subcontractor. "Envision Energy" operates in the renewable energy sector and is one of the major global manufacturers of wind turbines and energy storage batteries. For the first time, Ulaanbaatar city traded 500 billion MNT in bonds on the domestic stock market, with 300 billion MNT invested in the Booroljuut power plant. The first block of this, a 150 MW plant, was commissioned today. Additionally, by commissioning the 660 MW power plant under construction in Bayan soum, Tuv province by 2027, and the 50 MW Baganuur Battery storage plant next November, it will become possible to fully meet the capital’s energy demand. The most important thing is that by intensifying the transition to green energy within the framework of the government's energy revival initiative, the Prime Minister emphasized that by 2030, Mongolia will achieve the government's goal of meeting its energy needs domestically.

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Cellular Network to be Introduced in Over a Hundred Remote Subdistricts

Published: 2024-10-07 | Translated from: montsame.mn

The Communications and Information Technology Ministry is implementing the "Communications Infrastructure in Remote Rural Subdistricts" project to introduce cellular networks to 129 remote subdistricts. Specifically, the plan is to introduce this network to 74 subdistricts this year and 55 subdistricts next year. Out of a total of 1,639 subdistricts in the country, 1,448 have already been connected to cellular networks. In addition to expanding the network in subdistricts not yet fully connected, communication infrastructure will be established in subdistricts with no network access at all. For example, 10 subdistricts in the Bulgan, Chuluut, Öndör-Ulaan, Tsetserleg, Khairkhan, and Khangai districts of Arkhangai Province; 5 subdistricts in Teshig, Khishig-Öndör, Büregkhangai, Teshig, and Bayan-Agt districts of Bulgan Province; 4 subdistricts in Tsagaan-Uul, Ulaan-Uul, and Arbulag districts of Khövsgöl Province; and 7 subdistricts in Ulaan-Khus, Buyant, Delüün, and Tolbo districts of Bayan-Ölgii Province will receive network implementation. Additionally, 10 subdistricts in Altai, Mönkhkhaikhan, Duut, Möst, Bulgan, Darvi, Uench, and Khovd districts of Khovd Province; 5 subdistricts in Bayan-Öndör, Jinst, Baatsagaan, and Shinejinst districts of Bayankhongor Province; 7 subdistricts in Tögrög, Khaliuun, Tonkhil, Bayan-Uul, Erdene, Sharga, and Yesönbulag districts of Gobi-Altai Province; 2 subdistricts in Sümber district of Govi-Sumber Province and Delgerekh district of Dornogovi Province; 8 subdistricts in Erdenedalai, Saikhan-Ovoo, Luus, Öldziit, and Öndörshil districts of Dundgovi Province; and 5 subdistricts in Chuluunhoroot, Bayan-Uul, Khalkhgol, and Sergelen districts of Dornod Province will also see these implementations, according to the Ministry of Communications and Information Technology. Furthermore, communication infrastructure will be established in 9 subdistricts in Erdenetsagaan, Tümentsogt, Ongon, Khaltan, Bayandelger, Erdenetsagaan, Tüvshinshiree, and Uulbayan districts of Sükhbaatar Province; 8 subdistricts in Ikh Uul, Tes, Bayankhairkhan, Tosontsengel, Tsagaankhairkhan, Dörvöljin, Bayan-Tes, and Santmargats districts of Zavkhan Province; 2 subdistricts in Zavkhan and Zuunkhangai districts of Uvs Province; 10 subdistricts in Baruungovi and Tsetserleg districts of Övörkhangai Province; and 7 subdistricts in Möngönmorog, Ugtaaltsaidam, Erdene, Tsetserleg, Bayan-Önjuul, Altanbulag, and Bayandelger districts of Töv Province across a total of 16 provinces. As part of the project, communication bases and tower infrastructure will be built in the remote subdistricts, and 4G cellular services will be introduced, providing residents with opportunities to access internet services, receive timely disaster and emergency news and information, and make use of all types of e-government services without delay.

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Society

Grassroots: Signed Agreement for the Grant Aid for Human Security

Published: 2024-10-07 | Translated from: news.mn

Japanese Ambassador Extraordinary and Plenipotentiary to Mongolia, Masaru Igawahara, and the Governor of Darkhan-Uul Province, Azzhargal Boldbaatar, signed an agreement for a project to be implemented under the Government of Japan's "Grassroots - Grant Aid for Human Security" program. The project is titled "Renovation of the 18th School in Darkhan Soum, Darkhan-Uul Province". Under this project, repairs will be made to the roof of the school building of the 18th School in Darkhan Soum, Darkhan-Uul Province. The roof of this school has become severely deteriorated and leaks, causing difficulties for 1,338 students and 91 teachers to study and work in a safe and healthy environment. Once the project is implemented, a healthy and safe learning environment will be established. Since 1990, the Government of Japan has been implementing the "Grassroots - Grant Aid for Human Security" program in Mongolia for 34 years. This current project is the 605th project of the Grassroots Grant Aid and the 25th to be implemented in Darkhan-Uul Province. The maximum funding approved for this project is 100,138 USD. The "Grassroots - Grant Aid for Human Security" program was initiated by the Government of Japan in 1990, and it is a cooperative project implemented with local and municipal governments, education, and health organizations of developing countries. The projects that receive funding are those from which the local population can directly benefit, and overseas Japanese diplomatic missions play a key role in providing financial support. Embassy of Japan.

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About 189,000 households to benefit from night-time electricity tariff discount from next month

Published: 2024-10-07 | Translated from: ikon.mn

Starting November 1st, approximately 189,000 households will benefit from a night-time electricity tariff discount. The budget has allocated ₮30.5 billion for this purpose. Households in the ger districts of Ulaanbaatar will be eligible for discounts on their electricity tariffs used between 21:00 and 06:00, including renewable energy tariffs, which will be discounted by 50-100%. According to the Energy Regulatory Commission, it is estimated that about 189,000 households will benefit from this discount, with ₮30.5 billion included in the state budget. Before consumers can benefit from the tariff discount, they must have no outstanding electricity bills and must have a dual-rate meter, as specified in the regulations. This will be enforced accordingly. The electricity tariff discount will be in effect until April 1, 2025. In the first quarter of 2024, approximately 176,000 households benefited from a night-time electricity tariff discount, amounting to ₮19.6 billion. Moreover, for households in the ger districts, the procedure for providing electricity tariff discounts has been outlined. It is noted that although there is a plan to increase household electricity prices starting next month, a final decision has not yet been made. Current electricity tariffs in place: Warning: Media organizations (Television, Radio, Social and Web pages) are advised to credit the source (ikon.mn) when using our information in any form, either fully or partially.

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About 189,000 households will receive night electricity tariff discounts this year

Published: 2024-10-07 | Translated from: isee.mn

Households in Ulaanbaatar's ger districts will begin receiving discounts on electricity night tariffs from November 1. This includes a 50-100% discount on electricity and renewable energy tariffs used between 9:00 PM and 6:00 AM. According to the Energy Regulatory Committee, it is estimated that around 189,000 households will benefit from the night electricity tariff discount this year, allocating 30.5 billion tugriks in the state budget. Before consumers can enjoy the tariff discount, they must have no outstanding electricity bills and a dual-tariff meter, as stated in the regulations. This will be regulated accordingly. The discount period for electricity tariffs will continue until April 1, 2025.

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Environment

Discussing Changes in Geological Research of Mongolia

Published: 2024-10-07 | Translated from: unuudur.mn

A scientific conference dedicated to the 85th anniversary of the establishment and development of the geological service in Mongolia will be held on the 17th of this month. The conference will discuss the changes in geological research, as well as the current state of affairs. Additionally, issues concerning Mongolia's hydrogeology, engineering geology, and geoecology will be discussed on the 15th of next month. In honor of their 85th anniversary, those in the geological sector have organized numerous activities. For example, a professional competition for geologists was held on the 27th of last month. Furthermore, field training was conducted to enhance the skills of young professionals.

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Trial for Cleaning the Sediment Accumulated in the Tuul River Launched

Published: 2024-10-07 | Translated from: unuudur.mn

Due to the waste from the central treatment facility, equipment has been installed in the area to conduct a trial and technical adjustment for cleaning the sludge accumulated in the Tuul River near the Biocombinat and Songino Bridge, according to a report from the Water Authority. The equipment, named "Catfish," is widely used internationally for this purpose and is capable of cleaning an average of 30 cubic meters of sediment per hour. It can clean up to 300 cubic meters of pollution if operated for 10 hours a day. This is the first instance in our country where advanced technology is being used to neutralize riverbed pollution caused by the treatment plant. If the trial is successful, a plan is in place to organize a wide-scale cleaning of the mud and sludge that has accumulated over many years at the bottom of the Tuul River, as mentioned by Z. Batbayar, head of the Water Authority.

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Innovation

Starlink Devices Installed in Districts Without Internet Connection

Published: 2024-10-07 | Translated from: gogo.mn

A trial of the automated system for transmitting data for the 2024 regular elections of the Citizens' Representative Khural of the provinces, capitals, sums, and districts was conducted nationwide simultaneously. For this election, preparations were made to gather votes at 2230 polling stations across the country using 2824 vote-counting devices. In districts with more than 1500 voters, two vote-counting devices were placed at each station due to the number of voters. Additionally, Starlink devices were installed in districts without an internet connection. The purpose of this trial is to openly verify that the vote-counting devices are delivered to polling stations without damage and correctly, and that the network for transmitting results data on election day is functioning properly. The trial for transmitting election data was organized transparently and openly in front of the media, the public, and observers, and trial ballots were tested on the vote-counting devices. On October 11, 2024, from 07:00 to 20:00, the election for the Citizens' Representative Khural of the provinces, capitals, sums, and districts will take place, as reported by the General Election Commission.

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EVENT: Discussion on the 2024-2028 Education Sector Action Plan and Necessary Projects

Published: 2024-10-07 | Translated from: ikon.mn

Party factions in the State Palace of the Parliament will hold meetings. At 10:00 AM in the Civil Cases Initial Court Hall of Bayanzurkh District, the Mongolian Bar Association, in collaboration with the General Judiciary Council, will organize a discussion on "Working Environment and Hygiene of Lawyers, Current Challenges." At the II Building of the Mongolian University of Health Sciences, School of Nursing, Room 129, from 10:30 AM to 5:30 PM, a hands-on workshop on "Movement Therapy for Shoulder Pain" will take place as part of the 13th International Academic Conference of the Mongolian Society of Physical Therapy. At 11:00 AM at the "Mongol News" press center, citizen A. Ulziinyam, claiming to have been assaulted and harmed by the Governor of Bayanchandmani Soum in Tuv Province, G. Ariunbold, will give a statement. At 2:30 PM on the 23rd floor of the Tuushin Hotel, a joint meeting of the Ministry of Education, Ministry of Economy and Development, and Ministry of Finance will discuss the 2024-2028 education sector action plan and necessary projects. Ministers, State Secretaries of the ministries, and relevant unit heads will participate in the meeting. Warning: Media organizations (TV, Radio, Social, and Web pages) are required to credit the source (ikon.mn) when fully or partially using our news in any form.

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Middlings as Raw Material for Briquettes to be Analyzed in Independent Laboratory

Published: 2024-10-07 | Translated from: ikon.mn

The raw material for briquettes, known as middlings, is set to be analyzed in an independent laboratory. "Tavantolgoi Fuel" company, which supplies improved briquettes to households and organizations in the ger districts of Ulaanbaatar city, has stocked 89,000 tons in 43 warehouses. The second line of the eastern factory is set to be fully operational by October 10, while the production volume of the third factory is planned to increase. In addition, a decision has been made to send samples of the middlings, the raw material for briquettes, to an independent laboratory for analysis. The central and eastern factories produce 2,500 tons of briquettes daily, distributing them to 630 sales points across seven districts of the capital. The price of a 25-kilogram bag of briquettes remains at 3,750 MNT, and a ton at 150,000 MNT for households and organizations, indicating no increase in briquette prices. Warning: Media organizations (TV, Radio, Social, and Web pages) are reminded that any use of our information, in whole or in part, must credit the original source (ikon.mn).

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Health

Advanced Treatment for Severe Coronary Artery Stenosis to Be Localized in Mongolia

Published: 2024-10-07 | Translated from: gogo.mn

Minister of Health T. Munkhsaikhan met with a team of doctors from the Second Central Hospital of Mongolia who are planning to travel to China to localize the treatment of severe coronary artery stenosis and vascular dysplasia, which cannot currently be treated in Mongolia. According to Resolution 21 of the 2024 State Great Khural of Mongolia, several initiatives for strengthening the capacity of human resources in the health sector are planned in the 2024-2028 government action program. As part of this program, a team of five doctors from the hospital intends to visit Shanghai, China, to acquire expertise in the treatment of severe coronary artery stenosis and vascular dysplasia and localize this expertise in Mongolia. The list of diseases that cannot be treated in Mongolia includes severe coronary artery stenosis and vascular dysplasia. Among patients undergoing treatment for coronary artery dysplasia, 20% are diagnosed with moderate to severe coronary artery calcification. For example, in 2023, out of approximately 800 coronary angiographies conducted at the Second Central Hospital, about 85 cases of chronic total occlusion (CTO) were diagnosed. In Asia, Japan, South Korea, and Taiwan lead in terms of capabilities for coronary angiography, treatment, and intravascular imaging diagnosis. In these countries, the cost for severe coronary intravascular treatment ranges from 20,000 to 30,000 USD on average. By introducing this advanced technology, it is expected to: - Perform coronary artery dysplasia treatment according to international standards, reducing complications and mortality. - Treat severe coronary artery stenosis that cannot be treated in Mongolia, decreasing the number of patients needing to travel abroad for medical care. - Improve the quality of health services related to heart disease during public health emergencies and infectious disease outbreaks. Source: Ministry of Health

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Arts

ABOUT US: "Mongol Khan" Play Depicting the Complex History of Hunnic Succession to Premiere in Singapore

Published: 2024-10-07 | Translated from: isee.mn

The play "Mongol Khan" is set to open in Singapore, aimed at audiences in Asia. It will run from October 17 to November 3 at Singapore's Marina Bay Sands Theatre. This play, which premiered in London last year and had sold-out tickets, tells the complex story of Hunnic succession from 3000 years ago. According to the play's director B. Baatar, "Mongol Khan" highlights the rich history and philosophy of the ancient nomadic nations that existed in Central Asia over thousands of years. He mentioned, "Humanity is not remembering the Hunnic era, so I wanted to introduce it to the audience. The plot revolves around King Archug and showcases conflicts between his power and personal ambitions, as well as the contentious succession and the struggle for the stability of his vast empire." The narrative explores themes of jealousy and battles for great empires. Regarding actress O. Dolgoon, who plays the queen, it is her first time performing in a historical genre compared to other actors. She stated, "It requires more effort and responsibility from me. I compare my character to a precious pearl."

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Today's Stories

Politics

Economy

Diplomacy

Infrastructure

Society

Environment

Innovation

Health

Arts

Politics

IMF Deputy Managing Director Commends Mongolia's Achievement of Political and Economic Stability

Can the MPP Recall Its Members Involved in the Constitutional Breach?

Local Elections Voting to Take Place on Friday

Alcohol Sale Ban Due to Upcoming Elections

The party factions and working groups in Parliament will meet today

The State Great Hural (Parliament) Session Will Not Be Held This Week Due to the Mongolian People's Party's Break

If Young People Don't Make Changes, There Will Be No Reform in Governance

Economy

What are the benefits of the Wealth Fund Law for citizens?

S&P Agency: Development Bank Set to Gradually Resume Policy Lending in the Coming Years

N. Enkhbayar: Economic Expansion May Lead to Crises Similar to 2012 and 2016 Due to Budget Expansion

Online Shopping Wave: Who Benefits and Who Falls Behind

The Minimum Wage Will Be Raised to 792,000 MNT

Increasing Budget Deficits and Initiating Many Mega Projects is Risky

European Bank for Reconstruction and Development provides €2.3 billion financing for around 140 projects

The Rise of Online Shopping: Who Benefits and Who Falls Behind

Minimum Wage to Increase to 792,000 MNT Starting April 2025

Import Cement Tax Returns to 20 Percent

The Tide of Online Commerce: Who Benefits and Who Falls Behind?

Diplomacy

Russian Minister of Science and Higher Education Visits Our Country

Kim Jong Un Threatens to Use Nuclear Weapons

Infrastructure

The Importance of the European Bank for Reconstruction and Development's Support for Implementing 14 Mega Projects

Baganuur Battery Storage Plant to be Commissioned Before Peak Winter Load

Cellular Network to be Introduced in Over a Hundred Remote Subdistricts

Society

Grassroots: Signed Agreement for the Grant Aid for Human Security

About 189,000 households to benefit from night-time electricity tariff discount from next month

About 189,000 households will receive night electricity tariff discounts this year

Environment

Discussing Changes in Geological Research of Mongolia

Trial for Cleaning the Sediment Accumulated in the Tuul River Launched

Innovation

Starlink Devices Installed in Districts Without Internet Connection

EVENT: Discussion on the 2024-2028 Education Sector Action Plan and Necessary Projects

Middlings as Raw Material for Briquettes to be Analyzed in Independent Laboratory

Health

Advanced Treatment for Severe Coronary Artery Stenosis to Be Localized in Mongolia

Arts

ABOUT US: "Mongol Khan" Play Depicting the Complex History of Hunnic Succession to Premiere in Singapore

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