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ECONOMY
CHINA ACCOUNTED FOR 64.3 PERCENT OF MONGOLIAN TRADE
In 2022, Mongolia traded with 160 countries. The total trade turnover reached USD 21.2 billion; exports amounted to USD 12.5 billion and imports to USD 8.7 billion.
The total foreign trade turnover increased by USD 5.2 billion (32.1%). Exports increased by 35.7 percent, while imports increased by 27.2 percent compared to the previous year. Exports increased by USD 259.7 million in December 2022 and imports increased by USD 107.4 million compared to the previous month.
The foreign trade balance in 2022 developed with a positive balance of USD 3.8 billion and increased by 60.1 percent compared to the previous year. The trade balance developed with a positive balance of USD 562.6 million, which is 37.1 percent more than in the previous month.
China accounted for 64.3 percent of total of Mongolian trade, reaching USD 13.7 billion in 2022. Hard coal and copper concentrates accounted for 56.8 percent and 25.9 percent of total exports to China, while gold accounted for 99.7 percent of all exports to Switzerland.
Source: News.mn
See also: Total Foreign Trade Turnover Increased by USD 5.2 Billion
FITCH: MONGOLIA'S ECONOMIC OUTLOOK REMAINS LACKLUSTRE
Key View
- At Fitch Solutions, we expect that Mongolian real GDP growth will pick up only gradually from our estimate of 2.0% in 2022 to 4.5% in 2023.
- The reopening of Mainland China’s economy has brightened Mongolia’s export outlook, alongside broader signs that external risks are easing, while a resumption of key mining activities will help support domestic output.
- However, we think that these gains will be offset by the impact of high inflation and aggressive monetary policy tightening.
At Fitch Solutions, we continue to forecast Mongolian real GDP growth to pick up only gradually in 2023 to 4.5%, from our 2022 estimate of 2.0%. While that would mark a continued improvement in the underlying recovery, the economy would still be underperforming potential – it typically achieves growth in excess of 5.0%.
Source: Fitch Solutions (soft paywalled)
MONGOLIA'S 2022 COAL OUTPUT RISES 22.7 PCT; IRON ORE FALLS 28.8 PCT
Coal production of Mongolia came in at 36.96 million tonnes in 2022, rising 22.74% from 2021, showed data from the National Statistical Office of Mongolia.
In December last year, the country's coal production rose for eighth consecutive month to 6.68 million tonnes, surging 170.01% year on year and up 18.21% month on month.
Mongolia's iron ore production was 247,400 tonnes in December, down 68.95% on the year and 59.19% on the month.
Iron sand output was 159,100 tonnes in December, down 71.23% year on year and 68.12% from November, while iron concentrate production was 88,300 tonnes, slumping 63.8% from a year ago and 17.63% month on month.
Production of iron ore in Mongolia totaled 9.2 million tonnes in 2022, down 28.77% year on year.
Iron sand output was 7.47 million tonnes last year, down 18.6% year on year, and iron concentrate production was 1.73 million tonnes, down 53.72%.
Source: sxcoal.com
See also: Mongolia 2022 coal exports double, 94% to China
TRADE TURNOVER BETWEEN MONGOLIA, RUSSIA REACHES RECORD HIGH — SPEAKER
The trade volume between Mongolia and Russia surged to a record high of $2.7 bln in 2022, Speaker of the State Great Khural Gombojavyn Zandanshatar said on Thursday.
"Although the total annual trade turnover between the two countries reached an all-time high $2.7 bln, Mongolia still has a high foreign trade deficit," the Speaker of the Mongolian Parliament said, as cited by the press service.
The Chairman of the State Great Khural met a delegation of the Russian State Duma headed by deputy speaker of the lower house of the Russian parliament Aleksey Gordeev. Zandanshatar asked Russian lawmakers to provide support in lowering tariff and nontariff barriers that Mongolia faces in the trade of goods exported to Russia, including wool and cashmere goods.
In turn, Gordeev stressed that the establishment of a mechanism of cooperation between the parliaments of Russia and Mongolia is important for further development of bilateral relations.
Source: TASS
STATE-OWNED COMPANIES EARNED USD 100.6 MILLION IN 2023
On January 18, a presentation about the implementation of the Government's Resolution No. 362 on the actions to be taken to increase the state's foreign exchange reserves and the measures to be taken in the future was made.
In 2023, "Erdenes Tavantolgoi" JSC, "Erdenet Mining Corporation", "Mongolrostsvetmet" SOE, and "Darkhan Metallurgical Plant" JSC have reported that they have operated with a sales income of USD 100.6 million.
Source: GoGo News
DZUD IN MONGOLIA: CRITICAL TO ACT EARLY AND PROTECT HERDERS’ LIVELIHOODS
The Government of Mongolia reported that more than 60 percent of Mongolia’s territory is at high risk of dzud – a natural phenomenon that is unique to Mongolia.
Heavy snowfalls in winter following a severe drought in summer cause animals to perish due to a lack of grazing pastures. Herders also wouldn’t be able to prepare hay and fodder to survive through the harsh winter in dry summers.
Therefore, the Government of Mongolia calls for early actions and response to protect the livelihoods of the herder households.
“It is vital to take early prevention measures to minimize the impacts of any anticipated hardships and disasters on vulnerable people,” Tapan Mishra, UN Resident Coordinator in Mongolia said at the meeting held by the Humanitarian Country Team (HCT) in Mongolia, consisting of international development and humanitarian organizations.
Source: UN Mongolia
FOREIGN WORKERS IN MONGOLIA DECREASED BY 43.9 PERCENT
In the fourth quarter of 2022, 3.9 thousand foreign citizens from 95 foreign countries were working in Mongolia with labor contract with purpose of earning pay or profit or voluntarily without purpose of earning wage and income.
The number of foreign workers decreased by 1.7 thousand (29.8%) from the same period of the previous year and by 3.1 thousand (43.9%) to compared with the previous quarter. In terms of gender of all foreign workers with labor contract in Mongolia, 3.2 thousand (81.3%) were male and 0.7 thousand (18.7%) were female.
In terms of country of all foreign workers in Mongolia, 35.2% is from People’s Republic of China, 8.5% is from Russian Federation, 7.8% is from Socialist Republic of Vietnam, 6.2% is from Republic of Korea, 6.0% is from United States of America, 5.1% is from Republic of the Philippines, 4.1% is from Republic of South Africa, 4.1% is from Commonwealth of Australia…
Source: Montsame
TRADE FAIR TO BE ORGANIZED TO WELCOME LUNAR NEW YEAR
The capital city authorities held its regular meeting on January 16. Ulaanbaatar Mayor D.Sumiyabazar gave 12 tasks at the previous meeting, and the implementation rate was 90.6 percent. For example, the task of organizing an extended trade fair to welcome Lunar New Year was given. People spend more than 900 billion MNT to the foreign countries during the holiday season. Therefore, in order to keep this money domestically, prevent currency outflow and support small and medium-sized enterprises, it was decided to organize a trade fair. Currently, 15 locations have been selected for the fair which is planned to be held from January 20 to February 20.
New and short road turns planned
Regarding the plan of routes for the newly arrived buses, Head of the Capital City Public Transport Agency S.Javkhlantbaatar informed, “As of today, 117 buses have arrived. The first 30 buses were put into service today. The rest will be put into service within this week. …”
Source: The UB Post
MNCCI: "SURVEY ON THE POST-PANDEMIC BUSINESS ENVIRONMENT" REPORT
"Survey on the post-pandemic business environment" report
Download [File format: *.pdf, size: 1.9 MB]
Source: MNCCI
MONGOLIA’S INVESTOR CONFIDENCE SURGES WITH HIGH DEMAND FOR NEW BOND - EDITORIAL
Montsame News Agency interviewed Mr. Evariste Kouassi-Komlan who was appointed as the UNICEF Representative to Mongolia in November 2021. He has extensive experience with children's issues in the development and complex humanitarian contexts, with a focus on ensuring linkages between climate change and social sectors, and a history of establishing partnerships.
Good morning, Mr. Evariste Kouassi-Komlan. You have been in Mongolia for over a year now. What are your main wishes for the country in 2023?
-Since I arrived a year and one month ago in Mongolia, there have been a lot of substantial growth in many areas of the country. Mongolia has acceded to core human rights treaties and has set up an institutional mechanism to meet the commitments under international norms and standards.
Remarkable progress has been made in reducing child mortality rates, stunting and malnutrition, as well as expanding access to water and sanitation, kindergarten, and school. The past year's air pollution strategy and investment were also remarkable.
Source: Montsame
MORE THAN 60 MILLION USD TO BE INVESTED BY UNICEF FOR CHILD WELL-BEING IN MONGOLIA FROM 2023-2027 - INTERVIEW
Mongolia on January 11 issued a $650 million five-year bond, allowing the country to refinance its debt and improve its investment climate and economic outlook significantly in 2023.
S&P Global Ratings has given the bond a B rating, making Mongolia the first single-B rated issuer from the Indo-Pacific to enter the international debt market in 2023.
This bond issue reflects rising international investor confidence in the country.
Nevertheless, Mongolia’s economy depends heavily on the export of commodities, making it vulnerable to fluctuations in the global market.
High levels of debt, corruption, social unrest and inequality are ongoing concerns that must be addressed to ensure sustained economic growth.
The new bond will be used to refinance an existing $1.1 billion in debt, and the remainder will be paid from the state budget. The coupon for the newly issued bond is slightly lower than Mongolia’s highest coupon bond, suggesting investors are willing to accept a lower return on their investment in exchange for the bond’s stability and security.
Source: Mongolia
POLITICS
LAW ON INVESTMENT BANK APPROVED
The State Great Khural discussed the draft law on investment banks and approved it accordingly. Now the discussion on the measures and related regulation of the new law is underway. The Governor of the Bank of Mongolia, B. Lkhagvasuren, clarified the law’s purpose, importance, and amendments.
He stated, “The member of the State Great Khural B. Javkhlan and 18 other members submitted a draft of this law under a different name, the Law on Foreign Investment Bank, in 2016. There were many amendments and changes to the draft law until it was approved today.” During that time, the Development Bank was the only big bank that invested in and implemented notable development projects and programs, causing the commercial banks not to invest in significant projects due to the prerequisite of the State Bank limiting 20% to one borrower. Therefore, the members submitted the law expressing the need for the investment bank to invite foreign investment. Later, they eliminated the word Foreign not to discriminate against domestic investment and the contradicting international standard.
Source: Montsame
MONGOLIAN PM PROPOSES A CONSTITUTIONAL REFORM
A Constitutional reform was proposed by Mongolian Prime Minister L.Oyun-Erdene. The proposed reform would transition Mongolia from a semi-presidential republic to a traditional parliamentary republic.
The current 1992 constitution established a multi-party political system in Mongolia’s semi-presidential republic. That meant that the executive power is divided equally between the people-elected President and the Parliament-elected Prime Minister.
L.Oyun-Erdene advocated exploring constitutional reform and a transition to a parliamentary republic, as he argued that such a transition is integral to improve the policy-making process which has been impeded by periodic disagreements between the President and the PM.
The PM emphasized that there are alternative methods to effect changes without a total constitutional revision, such as amending certain provisions of the country’s fundamental legislation.
Source: News.mn
FINANCE MINISTER SAYS MONGOLIA IS COMPLETELY OUT OF DEFAULT RISK
During the Cabinet meeting on January 11, Minister of Finance B.Javkhlan presented the preliminary performance of the 2022 state budget and the measures taken to regulate the government’s external debt.
Minister B.Javkhlan noted that the measures implemented by the government in accordance with the New Revival Policy have yielded results, before saying, “The budget deficit has decreased by 60 percent, and investors’ trust has increased. Exports and foreign trade are improving. As a result of the implementation of the government measures, the economy, which fell to 3.9 percent in the first quarter of 2022, improved to about 4 percent at the end of the year. The economic outlook for 2023 is becoming more positive.”
“On December 5, 136.8 million USD of the Chinggis bond was repaid by issuing the Nomad bond in 2020 and the Century bond in 2021. As the work for intensifying the repayment of loans taken from the Development Bank, 994.7 billion MNT was collected in 2022.
Source: The UB Post
FIRST EVIDENCE ANALYSIS HEARING HELD FOR DEVELOPMENT BANK CASES
The ad hoc committee responsible for reviewing the implementation of projects and programs financed by Development Bank of Mongolia, results, loan issuance and repayment progress organized a public hearing on Monday at the State Palace.
Head of the committee and member of Parliament B.Enkhbayar remarked, “The committee has previously held two to three review and general hearings. Today’s hearing is the first evidence analysis hearing held under the Law on Parliamentary Supervision, which opens a new page in the history of Parliament of Mongolia.”
The public hearing is scheduled to take place in three stages. In specific, during the first hearing, which will last until January 20, the spending of 77 loans directly granted by Development Bank will be heard in detail, experts’ opinions will be reviewed and the relevant witnesses will be asked. In the second stage, or the evidence analysis hearing to be held from February 13 to 17…
Source: The UB Post
L.GANTUMUR ELECTED AS NEW CHAIRMAN OF DEMOCRATIC PARTY
A voting to elect the Chairman of the Democratic Party ended, and L.Gantumur was elected as a new Chairman of the Democratic Party.
S.Bayartsogt and Z.Narantuya, former Members of the Parliament, competed with him.
L.Gantumur said, "When I was a candidate for the party chairman six years ago, I visited 21 provinces and met with party members and supporters. The meeting which was held at the Cultural Center of the Provinces was not as chaotic as today’s. I see today's meeting as a meeting of unity. I wanted S.Erdene and Kh.Battulga to visit today.
The reason I am competing for the party chairman is to join forces to get the votes in the next election. If you want to restore democracy, don't be fooled by money. When I was elected to Parliament four times from Sukhbaatar district, I never gave money to people. I only shook hands with the people”.
Source: GoGo News
BILL ON PROTECTING HUMAN RIGHTS ON SOCIAL MEDIA TO BE SUBMITTED TO PARLIAMENT
A Bill on Protecting Human Rights on Social Media to be Submitted to the State Great Khural
At the Cabinet meeting, a bill on protecting human rights on social media was discussed and the Cabinet decided to submit it to the State Great Khural for urgent consideration.
It is required to develop legal framework and formulate regulations for protecting human rights and legitimate interests, restricting inappropriate, discriminatory and insulting words and contradictory contents, preventing children from exposure to any kind of contents that may adversely affect their physical and intellectual development, and prohibiting the promotion of drugs and psychoactive substances online.
Brief news:
-The implementation of Government Resolution No. 362 on measures to increase the foreign exchange reserves and further measures to be taken were presented at the Cabinet meeting.
-A bill to amend the Law on principles to comply with the Mongolian Law of Courts (revised version) was discussed and the members agreed to submit it to the State Great Khural.
Source: Montsame
BREATHING IN UB AIR EQUIVALENT TO SMOKING 6 PACKS OF CIGARETTES A DAY
It is impossible to have a healthy lifestyle as long as you live in Ulaanbaatar. The smoke in Ulaanbaatar is at times so thick that people and buildings are visible only in outline. Its smell is acrid and inescapable. The sooty air stings throats and wafts into the gleaming modern office buildings in the center of town and into the blocky, Soviet-style apartment towers that sprawl toward the mountains on the city’s edges.
Every person living in the capital is breathing the same amount of polluted air as smoking 5-6 packs of cigarettes a day. Therefore, heart disease, pneumonia, and tuberculosis – these are just some of the diseases aggravated by the already hazardous level of air quality in Ulaanbaatar. On bad days, handheld pollution monitors max out, as readings soar dozens of times beyond recommended limits. Levels of the tiniest and most dangerous airborne particles, known as PM-2.5, once hit 133 times the World Health Organization’s suggested maximum.
Source: News.mn
N.BAYARMAA: 60-70 PCT OF DOMESTIC VIOLENCE VICTIMS IN SHELTERS ARE CHILDREN - INTERVIEW
In the following interview, Director of the Department of Family Policy Implementation and Coordination of the Ministry of Labor and Social Protection N.Bayarmaa delved into the activities of one-stop service centers and shelters, social care for domestic violence victims, recent research and measures to prevent domestic violence.
The recent studies show that the economic crisis has had a strong impact on gender-based violence, as the number of cases and women resorting to shelters has increased significantly since the start of the pandemic. Women constituted 93 percent of the victims and approximately 90 percent of the crimes were committed in a household setting. Police and NGO-run helplines report an increase in calls of 19 percent and 30 percent, respectively, while reduced mobility during the quarantine period and social distancing measures resulted in victims of domestic violence having reduced options for support and counseling. The number of victims of domestic violence requesting shelter services jumped by 54 percent, reaching over 910 during the first quarter of 2020, from about 600 victims during the same period in 2019.
Source: The UB Post
MONGOLIA, CHINA LOOK TO BOLSTER ECONOMIC ACTIVITIES IN THE POST-COVID ERA - EDITORIAL
Mongolian President Khurelsukh Ukhnaa’s latest state visit to Beijing placed a heavy emphasis on China-Mongolia economic ties and thus reflected how Mongolia’s foreign policy supports these endeavors. As Mongolia continues to diversify its mining-dependent economy, Beijing, as its comprehensive strategic partner, will continue to play an active role in investments and developmental projects.
On November 28, Khurelsukh held official talks with Chinese President, Xi Jinping. Khurelsukh’s state visit to China marked the second high-level meeting between the two leaders since the outbreak of COVID-19. The official talks between the heads of state not only shed a light on China-Mongolia economic cooperation but also Mongolia’s foreign policy toward China.
Mongolia’s landlocked position naturally forces Ulaanbaatar to maximize trade and economic activities with Beijing. China – as one of Mongolia’s two immediate neighbors, and a major economic powerhouse to boot – necessarily has an outsized impact on Mongolia’s own development.
Source: The Diplomat
See also: Chinese, Mongolian FMs pledge to enhance cooperation
MONGOLIA: POLITICS AND PROTESTS IN 2023 - VIDEO
In December 2022, Mongolians took to the streets of Ulaanbaatar en masse for over a week of protests. The immediate cause was allegations of corruption in Mongolia’s coal industry, but the demonstrations became intertwined with general concerns about Mongolia’s economy, inequality, and lack of opportunities for young people. Also at play were larger political battles playing out between the ruling and opposition parties, and within the ruling party itself.
With such a dramatic end to 2022, what should we expect from Mongolian politics in 2023? In case you missed our live discussion on January 17, you can check out the recording here. Featuring Anand Tumutogoo, a Mongolia-based journalist; Bolor Lkhaajav, researcher and regular columnist for The Diplomat; and Dr. Julian Dierkes, associate professor at the University of British Columbia.
Source: The Diplomat
THE LESSONS MONGOLIA’S DEMOCRACY CAN LEARN FROM A COMPLICATED 2022 - EDITORIAL
Last year was marred by significant political developments in Mongolia. In January 2022, the Development Bank of Mongolia (DBM), Mongolia’s state-backed bank established to finance projects that bolster the economy, faced serious scandal when it was reported that hundreds of millions (USD) in non-performing loans had failed to be repaid and that many of the loans had been given to politically connected individuals with little scrutiny or oversight. In April, peaceful and organic youth-led protests called for politicians to “Do Your Jobs” due to the worsening economy and lack of political accountability and action. Those demonstrators submitted a list of demands aimed at preventing further inflation, supporting domestic industry, and reining in government spending. In December, a national scandal implicated upwards of 40 high-profile public officials for the loss of hundreds of millions of dollars of state-owned coal.
Source: International Republican Institute
MONGOLIA’S PROTESTS HAVE FADED. THE PROBLEMS FUELING THEM HAVEN’T - EDITORIAL
Mongolia ended 2022 with a bang when protesters stormed the country’s seat of government in the capital, Ulaanbaatar, on Dec. 5, before proceeding to camp out on the public plaza facing it for two weeks. Even though the demonstrations ultimately fizzled out, the corruption allegations that triggered them continue to rankle. Combined with political and economic challenges at home and increasingly complex relations with its two neighbors, China and Russia, 2023 is shaping up to be a challenging year for Mongolia.
Last month’s protests were sparked by revelations about grand corruption at Erdenes Tavan Tolgoi, a state-owned coal operator, and fed off resentment that had already fueled a previous round of demonstrations in April 2022. The protests signal mounting frustration, particularly among young people.
The events of December made international headlines, but they overshadowed what may have been the greatest surprise in Mongolian politics last year: The inability of the ruling Mongolian People’s Party to capitalize on the total dominance it gained…
Source: World Politics Review (soft paywalled)
DEFACTO REVIEW, JAN. 15 - VIDEO
Highlights of the week:
1. Large amounts of cash seized from railway official
2. Changes to the income tax bracket
3. Mongolia issues new bond worth $650 million
Source: Jargal Defacto
BUSINESS
MONGOLIAN MINING Q4 RAW COAL OUTPUT RISES 49 PCT QOQ
Mongolian Mining Corporation (MMC), a Mongolia-based coking coal producer listed in the Hong Kong Stock Exchange, registered a 49% rise in raw coal production in the fourth quarter compared with the preceding quarter, the company said in its financial report on January 18.
MMC and its subsidiaries mined 2.87 million tonnes of raw coal during the October-December quarter, representing a 171% surge from the year-ago level, data showed.
A total of 3.06 million tonnes of raw coking coal was processed to produce 1.47 million tonnes of washed coking coal during the fourth quarter, rising 28% quarter on quarter and 210% year on year.
MMC and its subsidiaries sold 1.48 million tonnes of washed coking coal products during the three months, on par with the previous quarter but surging 244% year on year, data showed.
Source: sxcoal.com
FIX PRICE STARTS OPERATING IN MONGOLIA
Fix Price, one of the leading variety value retailers globally and the largest in Russia, has entered the Mongolian market this January. The first two Fix Price stores opened in Mongolia’s capital city, Ulaanbaatar, on 13th and 14th of January as part of the chain’s franchise programme.
The selling space of each store is about 250 sq m. The first store is located at 37, Moskva street, while the second one is located at 36, Ard Ayush prospekt. Both stores have a product offering of more than 1,100 SKUs.
Products will be delivered to Fix Price stores in Mongolia by our franchise partner and shipped by trucks from the distribution centre in Novosibirsk.
“Mongolia has become the eighth country where Fix Price stores operate. We hope that Mongolian customers will appreciate the range of products and low prices offered by Fix Price, and we will see more store openings soon. The Company will consider further expansion in the country based on the first performance results”. - Vladimir Pogonin, Store Management Director at Fix Price
Source: eqs-news.com
"BOGD BANK" JSC PRESENTED ITS OPERATIONAL AND FINANCIAL REPORT FOR Q4’2022
Mongolian Stock Exchange Tier 1 company "Bogd Bank" (BOGD) JSC presented its financial and operational results for the 4th quarter of 2022.
Highlights and events:
- Bogd Bank's total assets reached 476.8 billion MNT by the end of 2022, an increase of 46% compared to the previous year. Since its establishment in 2014, total assets have increased 28.6 times, with an average annual growth rate of 51%.
- By reaching 116.67 billion MNT, the company's capital has increased by 700% over the past 8 years, with an average annual growth rate of 31%.
- The total net profit in 2022 is 19.13 billion MNT, a 77% increase compared to the 2021 figure of 10.78 billion MNT
- As of December 31, 2022, the return on equity (ROE) is 16.4%, and the current ratio is 39.4%.
Click here for the company report.
Source: MSE
'AGRIPRENEURSHIP CHALLENGE' CALLING FOR APPLICATIONS
The "Agripreneurship Challenge" is open for application to select innovative businesses in food and agriculture sector. This challenge is being organized by the European Union funded the Food and Agriculture Organization of the United Nations implemented “SDG -Aligned Budgeting to Transform Employment in Mongolia” project.
● Do you have an innovative product or service in the food and agriculture sector in Mongolia?
● Has your company been operating for 5 years or less?
● Do you have an innovative Minimum Viable Product?
● Do you plan to export your innovative product?
If you answered YES, apply now for the “Agripreneurship Challenge”.
The program will last for 3 months from January to March 2023 in 4 phases, and by participating in the program:
Source: The UB Post
TENDER OFFER MADE BY THE CONTROLLING SHAREHOLDER OF “JUULCHIN DUTY-FREE” JSC
According to Article No.2 of "Rules to purchase and make an offer to purchase shares of listed companies" by the FRC dated March 20, 2019, "Tavan Bogd Trade" LLC, a controlling shareholder of " Juulchin Duty-Free" JSC, has made a tender offer to purchase common shares from other shareholders. Offering price: MNT 69,700 Number of shares to purchase: 46,355 The commencement date of the offer to purchase shares: December 23, 2022 The expiration date of the offer to purchase shares: January 24, 2023 Payment date: January 26, 2023 Address: #1001, 10th floor of "Khaan bank tower" office, 15th khoroo, Khan-Uul district, Ulaanbaatar Telephone: 72727282 E-mail: cr@tavanbogdcapital.comSource: MSE
SHARE PRICE OF MONGOLIAN STOCK EXCHANGE REACHED MNT 174 AND DECREASED
On January 16, 2,967,161 shares worth MNT 643 million of 50 shareholding companies were traded. Secondary market trading of Mongolian Stock Exchange shares started on January 9. The price per share increased from MNT 100 to MNT 174 and then decreased to MNT 162.
The share price of 17 companies increased and the stock price of 26 companies decreased. And the rates of seven companies were stable. The share prices of companies such as "Eurasia Capital Holding" (SUN +14.55%), "Remicon" (RMC +11.86%) and "Tengerlig Media Group" JSC (TNGR +11.70%) had the highest growth.
And shares of "Khuvsgul Altan Duulga" (ADU -14.78%), "Mongol Nekhmel" (MNH -14.43%) and "Erdenes Solutions" (AMT -13.85%) had the highest loss.
In trading on January 17, 29,048 unit rights of two investment funds were sold for MNT 16,781,389, and 1,995 bonds were sold for MNT 198,338,390 in the secondary market of company bonds. And 1,994 securities were traded for MNT 198,861,620.
Source: GoGo News
ION ENERGY: MONGOLIA’S FIRST LITHIUM BRINE EXPLORER & DEVELOPER - INTERVIEW
ION Energy is in the business of exploration and development of lithium brine in Mongolia. ION is currently focused on two projects, their flagship project just 24 km from the Chinese border and another bringing their company to a total of over 110 thousand hectares of highly prospective lithium brine assets.
Joining us today is ION’s CEO, Ali Haji to shed some light on the company’s current exploration efforts.
Thank you for joining me, Ali.
TMH: You were in Mongolia for another strategic site visit in the Fall. What should investors know about ION’s exploration progress?
AH: Well, ION has had the ability to advance Urgakh Naran, our secondary asset, in the past year. You know, behind our peers, we’ve been about 12 to 18 months lagging, if you will, purely because Mongolia has not had the necessary skill set to advance lithium assets.
Source: The Market Herald
STOREPAY: BRIDGING BNPL WITH REAL WORLD APPLICATION - INTERVIEW
Storepay is the first and leading BNPL service provider in Mongolia. Since its 2019 launch, Storepay has been on a mission to offer its users a unique combination of fintech, cryptocurrency and blockchain technologies that are easy to use, borderless, time-saving, accessible, equal and free of charge.
When it launched, paying interest and other fees for credit cards and instalment loans were the norms in Mongolia. Even the latest digital lending apps required users to physically sign agreements. Storepay pioneered its end-to-end digital service that doesn’t levy interest and fees. As a result, Storepay is now used by over 500,000 Mongolians.
Storepay founder and CEO Khangal Nergui discusses the firm’s impressive growth to date and looks ahead to its 2023 expansion plans including roll out in Indonesia
RBI: Looking back to 2022, what were some of the highlights for Storepay?
Khangal Nergui:
As a startup in a fast-paced environment, we need to make some kind of progress every day, whether good or bad. Fortunately for Storepay, 2022 was full of milestones.
Source: Retail Banker International
GLOBAL AND REGIONAL NEWS
IMF SAYS FRAGMENTATION COULD COST GLOBAL ECONOMY UP TO 7 PCT OF GDP
The International Monetary Fund said that fragmentation could cost the global economy up to 7% of GDP in a new report. The longer-term cost of trade fragmentation varies from 0.2% of global output to almost 7%, which is roughly the combined annual output of Germany and Japan, according to the report published Sunday, which outlines a “Gordian knot of challenges” that policymakers face today. The research doesn’t state how long the fragmentation could take to impact growth of this magnitude. Depending on the definition of “fragmentation,” some forecasts by the IMF are even bleaker. Estimates that include technological disconnect between regions suggest that countries could lose up to 12% of GDP. The IMF lists a number of factors contributing to increasing global fragmentation, including Russia’s invasion of Ukraine and the Covid-19 pandemic. Both situations have caused international disruption to financial, food and energy supplies, with additional trading restrictions adding to the discord between regions. Source: CNBC
CHINA'S Q4 GROWTH SLOWS TO 2.9 PCT Y/Y, BEATS EXPECTATIONS
China's economy hit a bump in the fourth quarter, growing by 2.9% year-on-year, National Bureau of Statistics data showed on Tuesday, beating expectations but still underlining the toll exacted by a stringent "zero-COVID" policy.
Gross domestic product (GDP) had been forecast to expand 1.8% from a year earlier, according to a Reuters poll of analysts, slowing from 3.9% in the third quarter.
Growth for 2022 was at 3.0%, the data showed, far below the official target of around 5.5%. Excluding the 2.2% expansion after COVID first hit in 2020, this is the worst showing in nearly half a century.
On a quarter-on-quarter basis, GDP came in at 0.0% in October-December, compared with expectations for a 0.8% drop and a 3.9% gain in the previous quarter.
China's economy struggled over 2022, with major industrial centres including Shanghai and the Yangtze River Delta area as well as Guangzhou locked down or put under curbs for long periods as part of the government's "zero-COVID" strategy.
Source: Reuters
See also: China Dec industrial output up 1.3 pct, retail sales down 1.8 pct
China's trade tumbles sharply in Dec, clouds 2023 growth outlook
JAPAN GOV'T UPGRADES FY 2023 GDP GROWTH FORECAST TO 1.5 PCT
The government upgraded Thursday its forecast for Japan's economic growth in fiscal 2023 to a real 1.5 percent, projecting consumer spending will rise on higher pay packets.
The Cabinet approved the projected expansion in inflation-adjusted gross domestic product, which is up from a forecast of 1.1 percent made in July. Fiscal 2023's overall GDP is expected to reach 558 trillion yen ($4.23 trillion), exceeding the record 554 trillion yen for fiscal 2018.
Nominal GDP is also projected to rise 2.1 percent from the previous fiscal year to reach a new high of 571 trillion yen.
Private consumption, which accounts for more than half of the economy, is expected to rise 2.2 percent in fiscal 2023 on the back of wage rises.
Prime Minister Fumio Kishida has repeatedly called on firms to increase pay in line with surging inflation as part of his goal to achieve growth and wealth distribution through his "new form of capitalism."
Source: Kyodo News
See also: Japan GDP shrinks 0.2% in November, hit by inflation: JCER
Japan logs record $155bn trade deficit for 2022 as fuel costs jump
MOLYBDENUM PRICE IN EUROPE HITS RECORD HIGH
The copper market took a breather on Wednesday after eight straight days of gains, but not before touching a fresh six month high of $4.39 a pound ($9,680 a tonne) in early trade, bringing its gains YTD to 12%. Copper stocks shot out of the gate in 2023 on optimism over a post-covid recovery in China, which consumes more than half the world’s copper. Copper producers’ margins are also buoyed by a surge in the price of molybdenum, often produced as a byproduct of porphyry copper mines. Global moly production of 300,000 tonnes per year is primarily destined for the steel industry. Argus reports that European prices for moly are now at the highest levels since the company launched its in-warehouse Rotterdam assessment in 2019 as supply from China slows. China produces over 40% of the world’s moly. Chinese ferro-molybdenum hit 15-year highs recently. Source: Mining.com
U.S. INFLATION RETREATING AS CONSUMER PRICES FALL; LABOR MARKET STILL TIGHT
U.S consumer prices fell for the first time in more than 2-1/2 years in December as gasoline and motor vehicles prices declined, offering hope that inflation was now on a sustained downward trend, though the labor market remains tight. Americans also got more relief at the supermarket last month, with the report from the Labor Department on Thursday showing food prices posting their smallest monthly increase since March 2021. But rents remained very high and utilities were more expensive. Cooling inflation could allow the Federal Reserve to further scale back the pace of its interest rate increases next month. The U.S. central bank is engaged in its fastest rate hiking cycle since the 1980s. Fed officials welcomed the slowdown, with the Philadelphia Fed's Patrick Harker saying "hikes of 25 basis points will be appropriate going forward," in his view. Source: Reuters
See also: China’s recovery may mean the Fed will have to hike rates longer
CHINA COVID-19 REOPENING SET TO PUSH 2023 OIL DEMAND TO NEW HIGH -IEA
The lifting of COVID-19 restrictions in China is set to boost global oil demand to a new record this year, the International Energy Agency said on Wednesday, while price cap sanctions on Russia could dent supply.
"Two wild cards dominate the 2023 oil market outlook: Russia and China," the Paris-based energy watchdog said in its monthly oil report.
"Russian supply slows under the full impact of sanctions (while) China will drive nearly half this global demand growth even as the shape and speed of its reopening remains uncertain."
Source: Reuters
See also: China's 2022 gold output climbs, consumption weakens
Iron ore futures rally on China demand optimism
FOUR TROUBLING GLOBAL TRADE TRENDS FLASHING CONSUMER WEAKNESS FOR A MARKET ALREADY FEARING RECESSION
Wall Street’s biggest bank CEOs, from Jamie Dimon at JPMorgan to Brian Moynihan at Bank of America, were talking a recession as the “central case” as part of earnings reports on Friday morning. It might be a “mild” one, as Moynihan predicts, but from the world of global trade, there are several indicators backing up the bank chiefs’ view of the macroeconomic landscape, flashing warning signals of continued consumer weakness for the first quarter. The flow of trade is a real-time and forward-looking indicator of consumer spending and the economy because it shows supply, demand, and consumption. Here are four indicators to watch and what they are currently showing.
- 1: Warehouse inventory and rates
- 2: Manufacturing orders
- 3: Ocean freight bookings
- 4: Blank (cancelled) sailings
Source: CNBC
DAVOS 2023 HOSTS GLOBAL ELITE AMID RECESSION FEARS
The Davos crowd is returning to a familiar setting. But the lush green meadows that formed the backdrop of the first-ever "spring Davos" last May have been replaced by snow-covered slopes, where snow boots and fur coats have made a comeback.
While the weather may have changed from last year, the main talking points remain the same. The war in Ukraine and its massive economic fallout is once again expected to dominate the agenda of the annual event in the Swiss Alpine resort.
The World Economic Forum's annual meeting attended by global political and business leaders, celebrities and prominent social activists is taking place at a time the world economy is under extreme stress, reeling from high inflation, an energy crisis and other supply disruptions caused by the war, and a resurgence of COVID-19 cases in China.
Source: Deutsche Welle
CHINA'S OPENING AND U.S. RATES TO STIR COMMODITY MARKETS IN 2023 - EDITORIAL
Monetary policy and China's reopening will be key variables in global commodity markets this year, after multiple commodities set historical highs in 2022, driven by the Ukraine war and sharp inflation, more broadly.
While analysts' predictions range from bullish to bearish, one thing that they agree on is that most commodities are unlikely to soar above the level they reached last year.
Take crude oil, for example. The benchmark West Texas Intermediate (WTI) rose to $122 per barrel in June last year as the world's third-largest producer, Russia, was sanctioned by the West over its invasion of Ukraine. That was the highest price since 2008 when WTI hit an all-time high of $145 a barrel. As of early January, WTI is trading around $76.
Tatsufumi Okoshi, a senior economist at Nomura Securities, forecasts WTI will rise to the $90 level, given that global oil demand is expected to expand as China ends its strict zero-COVID policy and international travel recovers.
Source: Nikkei Asia
BCM QUARTERLY REPORT FOR Q3'22
The Business Council of Mongolia delivers you its Quarterly Report for Q3 of 2022. The first edition covers all events organised by the BCM through the months of September-October. The fuller version of the articles can be found in the highlighted "details" part on the report.
BCM SUBMITS POLICY PAPER
The Business Council of Mongolia (BCM) Secretariat has submitted a Policy Paper to the Government of Mongolia on 13 October 2022.
BCM Secretariat has submitted summary of issues and proposed solutions on newly adopted Corporate Income Tax law drafted by the Chair and Vice-Chairs of the Tax & Regulatory Working group (lead by Ms. Kh.Amarjargal, Country Director Mongolia-Rio Tinto, Mr.B.Battushig - Founding Partner of DB>S LLP and Mr.R.Khishignemekh -Senior Partner of Ernest and Young TMZ).
The 42 pages of findings and recommendations was submitted to the Cabinet Secretariat of the Government of Mongolia, to the Minister of Finance, to the Minister of Mining and Heavy Industry; to Secretariat of the State Great Khural (Parliament); Standing Committee on the Economic Affairs; Ministry of Justice and Internal Affairs; Standing Committee on the Budget; Economy and Development Ministry. In collaboration with Mongolian National Chamber of Commerce and Industry, American Chamber of Commerce in Mongolia, Ulaanbaatar Chamber of Commerce and Mongolian National Association.
BCM would like to thank Mongolian National Chamber of Commerce and Industry, American Chamber of Commerce in Mongolia, Ulaanbaatar Chamber of Commerce and Mongolian National Mining Association and BCM Regulatory & Tax Working Group for their efforts to protect legal interests and rights of business entities in Mongolia.
Source: BCM
THE BCM APPOINTS RAPHAËL GOUÉ AS OFFICIAL BCM REPRESENTATIVE IN EUROPE
The Business Council of Mongolia is pleased to announce Mr. Raphaël Goué as an official BCM Representative in Europe.
Raphaël Goué is an expert in energy and banking, having spent more than 12 years in Asia as well as being involved in Europe-Asia cross-border projects since the mid-90s, with a focus on financial services, energy and telecommunications.
Mr. Goué has a wealth of experience in supporting global financial institutions and energy companies in their strategies in Asia, as well their development and M&A. He has previously held various positions in organizations such as Société Générale, Vivendi Universal, Booz & Co and Capital One in Europe, Africa and Asia. As a senior advisor of the global retail banking association EFMA, Raphaël has been supporting the development of banking’s leading association in selected Asian markets, and supporting EFMA in the fintech sector in Europe.
He holds an engineering degree from the École Nationale Supérieure de Géologie in Nancy, France, a master in material science from École de Mines de Nancy, and a MBA from HEC (Paris) he finalized at the Columbia Business School (New York).
The BCM is looking forward to expanding its reach to Europe with Mr. Goué’s leadership and assistance.
SDG INVESTOR MAPPING PROJECT SURVEY - IDENTIFYING BUSINESS CASES FOR INVESTMENT OPPORTUNITIES
The objective of this template is to collect data on businesses aligned with SDGs, and if selected, your provided data will be compiled into SDG Investor Map datasheet which will be eventually uploaded onto Global SDG Investor Platform managed by UNDP SDG Impact. The outcomes of the data will be aggregated to gather insights that will be presented in the form of a report along with other secondary research that we have conducted. Thus, we would like to seek your permission to use your data for business research and documentation purposes. For any individual information from your business, due permission will be sought before the publishing of the report. If you have any questions or concerns, please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. and This email address is being protected from spambots. You need JavaScript enabled to view it..
UNICEF: GUIDANCE FOR EMPLOYERS ON FLEXIBLE WORK ARRANGEMENTS AND OTHER GOOD WORKPLACE PRACTICES IN THE CONTEXT OF COVID-19
A family friendly workplace or employer is one whose policies and practices make it possible for employees and/or workers to more easily achieving work-life balance, and to fulfil both their work and family obligations. These policies may include, but are not limited to, childcare, breastfeeding rooms, flexible work arrangements, paid leave, safe transport, parenting education and so on. In Mongolia and various other countries, authorities have enforced kindergarten- and school closure policies as part of the preparedness and response to contain the COVID-19 epidemic. In addition to the impacts on children’s education, there are concerns about children’s protection and well-being as children are left alone or without adequate care as many parents still need to go to work. COVID-19 may also have negative effects on mental health and wellbeing of patients (if any), caregivers, children and adolescents and the public, such as experiencing fear of the consequences of infection with a new virus, and triggering stigma. Those placed in quarantine (or self-isolated) may experience boredom, loneliness, and anger. By promoting flexible working arrangements such as adjusted working hours, working from home and/or support childcare, your employees will be in better position to address any childcare challenges and not be distracted by concerns about their children’s safety and wellbeing at home. Click here to view in English. Click here to view in Mongolian.
UNICEF: CALL FOR ACTIONS OF THE PRIVATE SECTOR TO REDUCE CHILDREN’S EXPOSURE TO AIR POLLUTION IN UB
Too many children are at risk of dying in UB due to air pollution each year. In addition to longer-term measures to reduce overall levels of air pollution in Ulaanbaatar, UNICEF recommends that companies address some of their CSR activities in the following ways:
- Provision of air purifiers to kindergartens, schools and clinics. Children spend a considerable amount of their time in school. Air purification systems are demonstrated to be effective in reducing air pollution levels within a home or classroom. Recent innovations have made these more affordable, durable and effective. Every classroom should have an air purifier.
- Provision of electric heaters to kindergartens, schools and clinics. Electric heaters can help to reduce ambient air pollution. Reducing financial barriers to access can also help improve use of electric heaters.
- Improved construction and insulation in kindergartens, schools and clinics. This can help reduce the amount of air pollution that enters facilities where children spend most of their time. It also saves considerably on heating costs. Studies show some improvements can decrease air exchange by up to 40%.
- Provision of air pollution monitoring devices in kindergartens, schools and clinics. Monitoring devices are often a first, major step to understanding one’s own risk to air pollution. It can not only inform improved practices to reduce exposure, but it is also an effective mechanism for communities to better understand what is causing air pollution, and when it is particularly harmful.
- Improved awareness and behaviour-change campaigns. Low awareness amongst communities about the impacts of air pollution on child health and how to respond is a key barrier to addressing the air pollution crisis. There is a need to influence policymakers, relevant government institutions, businesses, CSOs, development partners, and the general public (including families and children) about the risks that air pollution poses to their health, as well as provide guidance and recommendations on various ways to address some of the most immediate threats.
These actions will reduce children’s exposure to air pollution, safeguarding them from the worst impacts at the same time as building momentum and creating an enabling environment for longer plans that reduce air pollution. UNICEF will provide guidance on these recommendations where possible. UNICEF can also help facilitate connections between actors, agencies and institutions, including schools/ clinics where children are particularly affected. However, in order to maximize efficiency, these projects should be planned, developed, implemented and monitored by the private sector company involved. Nor will any funding go through UNICEF. This helps enhance accountability, and allows private sector donors to be more actively involved in the solution of directly supporting children in UB to breathe cleaner, healthier air.
For more information and guidance, please contact UNICEF for (Amy Wickham, This email address is being protected from spambots. You need JavaScript enabled to view it.; and Sunjidmaa Jamba, This email address is being protected from spambots. You need JavaScript enabled to view it.)
BCM GUIDELINE FOR COMPANIES TO COMBAT AIR POLLUTION
Purpose: This Guideline document is to help CEOs and business leaders quickly identify possible actions they can implement in their organizations against air pollution.
Resources for information on Air Pollution
Specific ACTIONS that companies can take NOW:
Educate employees about air pollution; invite guest speakers; encourage employees to share information with friends and family; discuss possible solutions with employees
- Possible topics: damages and causes of air pollution, protection measures, energy consumption & efficiency; indoor air quality (smoking indoors); breastfeeding & healthy diet; vehicle idling; vehicle maintenance;
Work environment:
- Improve energy efficiency in building/office to reduce energy consumption;
- Plant & maintain trees; install air cleansing plants in the office;
- Install HEPA air filter and air purifiers to tackle indoor air pollution (For an affordable solution, visit http://smartairfilters.com/mn/en/;
- Install monitoring devices;
- Smart Air Mongolia masks
Work activities:
- Ensure company vehicles are well maintained to reduce pollution emissions;
- Drivers/employees instructed to not idle & to turn off vehicle engine when not moving;
- Implement carpooling activities;
- In polluted air, ensure employees wear pollution masks;
Social responsibility:
- Focus CSR (corporate social responsibility) initiatives to tackle air pollution
- Tackle air pollution in UB: UNICEF recommends focusing on areas where children are especially affected, and where urgent interventions need to be put in place to protect them as soon as possible. These include the provision of air filtration systems and electric heaters in kindergartens and schools in some of the worst-affected regions. For more information and guidance, please contact UNICEF for (Nicholas Rees, This email address is being protected from spambots. You need JavaScript enabled to view it.; and Sunjidmaa, This email address is being protected from spambots. You need JavaScript enabled to view it.);
- Run marketing/PR campaigns & contests that raise awareness about air pollution.
List of distributors for pollution masks:
- BRB – 70119967, 99658555
- BOX shop – 99062387, 75557007, 90878111 – Facebook: RZ утааны маск
- CATD LLC – 11327308, 99114346
- Mmarket – 75758001 – Facebook: Утааны Маск
- MONOS Pharmacy – 99190858
- Seven summits – 11317923
- 3M Mongolia Premier Service - 9400-3088, 9910-3335
- Utaanii Mask – 99906643 – Facebook: Утааны маск + Агаар шүүгч
- Cycling World Mongolia LLC authorized distributor of RESPRO pollution masks- 77110444
MEMBER-TO-MEMBER SPECIAL OFFERS & BENEFITS:
- Orchuulga 24 is providing a 15% discount on written translation services to BCM Members - Ombol LLC is offering free Hepatitis C medication to employees of BCM member organizations, provided that the individual pays into state health insurance. ECONOMIC INDICATORS
HISTORIC ANNUAL INFLATION
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
Year 2014 *11.0% [source: NSOM]
Year 2015 *1.9% [source: NSOM]
Year 2016 *1.1% [source: NSOM]
Year 2017 *6.4% [source: NSOM]
Year 2018 *8.1% [source: NSOM]
Year 2019 *5.2% [source: NSOM]
Year 2020 *2.3% [source: NSOM]
Year 2019 *13.4% [source: NSOM]
*Year-over-year (y-o-y), nationwide
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 - 9.75% [source: IMF]
March 11, 2009 - 14.00% [source: IMF]
May 12, 2009 - 12.75% [source: IMF]
June 12, 2009 - 11.50% [source: IMF]
September 30, 2009 - 10.00% [source: IMF]
May 12, 2010 - 11.00% [source: IMF]
April 28, 2011 - 11.50% [source: IMF]
August 25, 2011 - 11.75% [source: IMF]
October 25, 2011 - 12.25% [source: IMF]
March 19, 2012 - 12.75% [source: Mongol Bank]
April 18, 2012 - 13.25% [source: Mongol Bank]
January 25, 2013 - 12.50% [source: Mongol Bank]
April 8, 2013 - 11.50% [source: Mongol Bank]
June 25, 2013 - 10.50% [source: Mongol Bank]
July 30, 2014 - 12.00% [source: Mongol Bank]
January 14, 2015 - 13.00% [source: Mongol Bank]
January 14, 2016 - 12.00% [source: Mongol Bank]
May 6, 2016 - 10.50% [source: Mongol Bank]
August 18, 2016 - 15.00% [source: Mongol Bank]
December 19, 2016 - 14.00% [source: Mongol Bank]
June 15, 2017 - 12.00% [source: Mongol Bank]
December 22, 2017 - 11.00% [source: Mongol Bank]
March 23, 2018 - 10.00% [source: Mongol Bank]
November 27, 2018 - 11.00% [source: Mongol Bank]
March 11, 2019 - 10.00% [source: Mongol Bank]
April 13, 2020 - 9.00% [source: Mongol Bank]
September 14, 2020 - 8.00% [source: Mongol Bank]
November 11, 2020 - 6.00% [source: Mongol Bank]
January 1, 2022 - 6.50% [source: Mongol Bank]
SOVEREIGN CREDIT RATING
| Moody’s |
Fitch |
S&P |
B3 – stable – 16 Mar 2021
B3 – negative – 8 May 2020
B3 – stable – 18 Jan 2018
Caa1 – stable – 30 Mar 2017
Caa1 – neg. watch – 15 Feb 2017
Caa1 – stable – 18 Nov 2016 |
B – stable – 9 Jul 2018
B- – positive – 17 Nov 2017
B- – stable – 22 Nov 2016
B – stable – 24 Nov 2015
B+ – negative – 13 Dec 2013 |
B – stable – 10 Nov 2018
B- – stable – 19 Aug 2016
B – stable – 03 Nov 2015
B+ – neg. – 29 Apr 2015 |
CURRENCY RATES – 19 January 2023
| Currency |
|
|
Rate |
| U.S. dollar |
USD |
|
3,471.16 |
| Euro |
EUR |
|
3,751.63 |
| Japanese yen |
JPY |
|
27.08 |
| British pound |
GBP |
|
4,280.81 |
| Hong Kong Dollar |
HKD |
|
443.39 |
| Russian ruble |
RUB |
|
50.48 |
| Chinese yuan |
CNY |
|
512.18 |
| South Korean won |
KRW |
|
2.81 |
|
