MONGOLIA AIMS AT FEWER STATE-OWNED COMPANIES

Ulaanbaatar /MONTSAME/ Supporting the private sector, the Government of Mongolia aims to cut state firms by one-third. The Mongolian government plans to slash the number of state-owned enterprises by one third to encourage private investment and set up a sovereign wealth fund, said the President of Mongolia Ts.Elbegdorj, during his speech at a Mongolia-Hong Kong business luncheon on Thursday. Mongolia will also enact a law that will discourage companies owned by Mongolian ministers from competing with foreign and private firms, he said. “It's hard to compete with government companies as they have government funding and monopoly power”. The Mongolian government plans more laws to foster privatization and reduce state ownership, said S.Javkhlanbaatar, acting director general of the Invest Mongolia Agency of Mongolia's Ministry of Economic Development. “The elimination or privatization of one-third of Mongolian SOEs will be a long process". The first companies to be included in the upcoming privatization process will be the coal mining companies of Shivee-Ovoo and Baganuur.