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ECONOMY
MEDIAN WAGE REACHES MNT 1.07 MILLION PER MONTH
The average wages and salaries is calculated from the report of the General Authority for Social Insurance. According to this report, 719.3 thousand employees were working in 46.3 thousand enterprises in the fourth quarter of 2021.
The number of enterprises increased by 1.9 thousand (4.3 percent) from the same period of the previous year and increased by 315 (0.7 percent) enterprises from the previous quarter. The number of employees increased by 27.7 thousand (4.0 percent) from the same period of the previous year and by 6.8 thousand (1.0 percent) from the previous quarter.
In the fourth quarter of 2021, the median wage was MNT 1068.1 thousand among 719.3 thousand persons have paid social insurance. The median wage increased by MNT 75.1 thousand or 7.6 percent from the previous quarter.
Source: Montsame
FRC RECOMMENDATIONS FOR ENSURING FINANCIAL AND MACROECONOMIC STABILITY
The Financial Stability Council held an irregular meeting on 28 February 2022. Based on consideration of the country’s economic outlook, external risks, and uncertainty, the meeting provided recommendations for ensuring financial and macroeconomic stability and normal operations within the sector. The recommendations are as follows.
One. Ensure continuous operation of international payments and settlements, in accordance with the external economic situation.
Two. Increase the capacity of border points reflected in the New Revival Policy, complete the expansion and construction of border points aimed at immediately improving trade turnover, and ensure normal operations by mutual agreements with China, and close coordination of the planning and organization of border points.
Three. Strengthen infection prevention and control in the border areas, improve border management, and increase exports by accelerating the introduction of container terminals and automated guided vehicles (AGVs) that reduce direct human involvement.
…
Source: FRC
TAX REVENUE INCREASES BY 66.2 PERCENT IN FEBRUARY Y/Y
According to the National Statistics Office of Mongolia, in the first 2 months of 2022, the total revenue of the general government budget was MNT 2.6 trillion, increased by MNT 860.0 billion (50.0 percent) compared to the same period of previous year. The equilibrated revenue of the general government budget was MNT 2.5 trillion, increased by MNT 840.7 (51.7 percent) billion compared to the same period of previous year.
In February 2022, the total equilibrated revenue and grants of general government budget was MNT 1.5 trillion, increased by MNT 575.4 billion (60.8 percent) compared to the previous month. The total expenditure and net lending were MNT 1.1 trillion, decreased by MNT 173.2 billion (13.3 percent) compared to the previous month.
In February 2022, tax revenue reached MNT 1.4 trillion, increased by MNT 577.3 billion (66.2 percent) compared to the same period of previous year.
Source: Montsame
LOAN OF MNT 400 BILLION FOR AGRICULTURAL DEVELOPMENT TO BE DISBURSED
At today's regular meeting of the Cabinet, a decision was made to issue a loan of MNT 400 billion with a 3 percent interest rate for the development of the agricultural sector.
Specifically, MNT 100 billion will be disbursed for the circulation of agricultural products, MNT 50 billion to vegetable farmers, and MNT 190 to wool, leather, and cashmere factories.
The Cabinet also submitted a resolution to the State Great Khural to amend the livestock taxation in order to develop intensive livestock breeding in agricultural areas within the framework of the ‘New Revival Policy’. The draft provides for a tax of up to MNT 10,000 on each livestock in agricultural areas.
Source: Montsame
MONGOLIA'S TAVAN TOLGOI-ZUUNBAYAN RAILWAY TO START OPERATION
Mongolia is expected to put the 416-kilometer Tavan Tolgoi-Zuunbayan railway into operation after completing the first test shipment to Erenhot border port in China.
The trial shipment began on March 8, carrying 50 wagons or 3,200 tonnes of copper concentrate produced at Oyu Tolgoi mine bound for China via Zuunbayan, Sainshand and Zamiin-Uud/Erenhot, said L. Khaltar, Minister of Roads and Transport Development.
Construction of the railway started on May 24, 2019.
Mongolian Prime Minister Oyun-Erdene reportedly plans to travel to Dornogovi province this month to attend the official opening ceremony of the railway.
Source: SXCoal.com, LehmanLaw Mongolia
See also: Construction of new pathway for export kicks off
WORLD BANK: AIR TRANSPORT AND SECTOR COORDINATION ISSUES AMONG THE TOP OBSTACLES FOR MONGOLIA’S TOURISM SECTOR
With a unique value proposition to tourists, Mongolia’s tourism sector has substantial growth potential, but faces key constraints in air transport and sector coordination, according to the World Bank’s new study on Mongolia’s tourism sector.
The study, entitled Fostering Inclusive Tourism Development in the Aftermath of COVID-19, analyzes the performance of the Mongolian tourism sector, its regulatory environment, and policy options based on a data-driven economic modeling approach.
Tourism is an important contributor to Mongolia’s economy and accounted for 7.2% of GDP, 6.8% of total exports, and 7.6% of total employment in 2019, which was the best year ever, before collapsing in 2020 due to COVID-19. Relative to comparators in Eurasia as well as to countries outside of Eurasia with similar geographic features and/or tourism offerings, Mongolia has been losing market share over the last decade. However, leisure tourism has continued to expand while business travel has declined.
Source: World Bank
MONGOLIA HAS STARTED ISSUING E-VISAS TO SAVE TIME AND MONEY FOR FOREIGN NATIONALS
Mongolia has started issuing e-visas to save time and money for foreign nationals traveling to Mongolia. Citizens of the countries on this list can apply for Mongolian e-visa from anywhere in the world.
Types of e-visas that can be issued:
- Tourist /K2/
- Participant in cultural and sports competition /K4/
- Transit /K6/
How to apply for an e-visa:
- Go to www.evisa.mn
- Fill out the visa application accurately and completely
- Pay e-visa fee online
- Visa application reviewal
- If approved, your ETA /Electronic Travel Authorization/ will be sent to your e-mail address
Source: GoGo News
FAO: MONGOLIA FOOD SECURITY SNAPSHOT
FOOD SECURITY SNAPSHOT
- Bumper wheat production obtained in 2021
- Cereal import requirements in 2021/22 forecast well below average level
- Prices of beef and mutton seasonally increase since November 2021
Harvesting of the 2021 wheat crop, mostly irrigated, finalized last September and production is officially estimated at a bumper level of 566 000 tonnes. The area planted is estimated at a well above‑average level, sustained by the strong local demand and public support to wheat producers aiming to increase local production and prevent shortages of wheat flour amid the COVID‑19 pandemic. Support was provided through the distribution of agricultural inputs at subsidized prices, including fuel, fertilizers and pesticides.
Prices of beef and mutton meat, the country’s main staple food, increased seasonally since November 2021, reflecting low market availabilities due to reduced livestock sales. Herders tend to sell most of their animals between July and November, when livestock usually reaches the best body conditions after grazing on summer and autumn pasture.
Source: FAO
See also: Subsidy of MNT 100,000 to be provided for each ton of domestically grown vegetables
EBRD PUBLISHES “ASSESSMENT OF REORGANISATION PROCEDURES IN INSOLVENCY” REPORT
The recent Covid-19 crisis has highlighted the importance of insolvency and reorganisation frameworks to support businesses in financial difficulties. In response, EBRD carried out a Business Reorganisation Assessment of national insolvency frameworks to provide an overview of business reorganisation practices and to propose areas where further development of national legislation is needed.
The Assessment was conducted in 38 economies of EBRD operations and the analysis of law of 40 jurisdictions, as well as domestic practices.
After almost a year-long study, in Feb 2022 EBRD has published its findings – a comprehensive report on business reorganisation practices across all the countries where EBRD operates. The main findings of assessment are presented below. Where appropriate, these findings are compared with the Mongolian legal framework:
Source: KhanLex
MONGOLIA RELAXES ENTRY RULES FOR TOURISTS
After more than two years, Mongolia reopened its air border to resume international passenger flights on 1 June, 2021. However, there was strict rules for international travellers due to coronavirus. For example, tourists must present proof of being vaccinated or having recovered from Covid-19 with a negative test result; and once landed in Mongolia, must undergo 3-7 days of self-quarantine.
On 14 March, 2022, Mongolia removed PCR test certificate requirement for fully vaccinated international arrivals. Furthermore, Travellers now can be able to enter Mongolia without having to quarantine.
The number of tourists visiting Mongolia has increased by about 10 percent a year since 2016 but decreased by 94 percent in the last two years due to the global pandemic. As a result, in 2021, the tourism industry lost USD 583 million.
Source: News.mn, Montsame
CONSTRUCTION OF 518 KM AUTO ROAD CONNECTING BORDER CHECKPOINTS TO LAUNCH NEXT MONTH
In the framework of the government’s New Revival Policy, objects have been set to connect the country’s border checkpoints through auto roads as well as to implement the construction project for highway en route Zamiin-Uud - Altanbulag. The construction of the 518-km auto road connecting the border checkpoints will launch this year, reported the Auto Road Policy Coordination Department of the Ministry of Road and Transport Development.
The road construction will be launched in April. More specifically, preparations are underway for 680 construction works for four projects planned to continue to be implemented next year alongside works to launch three new projects in 2022. The 25-km road en route Tsagaannuur - Ulaanbaatar is being constructed through an ADB project, with its progress at over 40 percent.
In the framework of public-private partnership, works to construct a 470-km road en route Tavantolgoi - Khangi have been launched.
Source: Montsame
UVURKHANGAI PROVINCE TO SPEND MNT 1.8 BILLION TO INCREASE GREEN AREAS
In relevance with the Billion Tree National Movement, Uvurkhangai province has announced 2022 as the year to increase green area and reduce environmental pollution. The soum plans to spend about MNT 800 million from the local development fund and the province MNT 1 billion for this year's work.
Uvurkhangai province has joined the national movement and plans to plant 20 million trees by 2030. As a result, the amount of green area in urban areas will increase by 520 hectares, and it is estimated that the green area per capita will reach 9-10 sq.m.
According to the Environmental Survey, more than 70 percent of Uvurkhangai province's territory is desertified. Experts believe that it is important to maintain ecological balance due to the combination of mountain, steppe and gobi. In particular, the province aims to rehabilitate forests, not only planting new trees.
Source: GoGo News
See also: Arkhangai aimag pledges to plant 20 million trees by 2030
120 million trees to be planted in capital city
NEW SOLUTION, OLD HARDSHIPS - EDITORIAL
The Mongolian government plans to revive the railway sector and build a 227-kilometerlong railway from Zuunbayan to Khangi within this year. This article will touch on when and how it will be built, the significance of the project, and the challenges.
Mongolia has only one port connecting it to its southern neighbor, which accounts for 95% of its foreign trade, and two ports connecting it to its northern neighbor, which accounts for only a few percent of the trade, with one of them (Ereentsav) not in use. The only port in the south, Zamiin-Uud/Ereen Port, has been overloaded for a decade now. Especially in the last two years, our southern neighbor has closed its borders due to the pandemic, as well as Winter and Summer Olympics, leading to goods being stuck for months or years.
The government has been discussing the construction of a new port on the southern border for years, but to no avail.
Source: Jargal DeFacto
NO HEATING, NO ELECTRICITY: IN YURT SETTLEMENTS IN MONGOLIA, TAILORED INFORMATION IS ESSENTIAL - VIDEO
The Crisis Communication Chapter distributes targeted information packages to the population. Kindergarten and hospitals act as multipliers. To support their patients, the doctors have even taken out a loan.
Source: Deutsche Welle
HOW MONGOLIA CAN BECOME RICHER - EDITORIAL
Erik is a banker and after more than 30 years working in banking in a number of developing countries around the world, he gives an unfiltered assessment of the economic opportunities and risks facing Mongolia as the country moves further into its fourth decade of democracy.
Erik points to a number of Mongolia's economic strengths, including well-known sectors such as mining, as well as the country's unique position between Russia and China, and emerging sectors driven by increasing education rates, particularly among Mongolian women and young people.
"A large portion of the population is also well-educated and intelligent. In particular, the majority of university graduates are female and are smart, skilled and dedicated. This human potential is a real strength," says Erik.
Democracy, he argues, is the foundation for these strengths. However, during four years working in Ulaanbaatar, Erik also formed a view of the obstacles in the way Mongolia's economic development; namely, the problematic entanglement of politics and business.
Source: Mongolia Weekly
POLITICS
MONGOLIA TO FIRMLY PURSUE NEW POLICY FOR ECONOMIC REVIVAL
Mongolia will firmly pursue a new revival policy to place its economy on a path of renewal and recovery, Parliamentary Speaker Gombojav Zandanshatar said Tuesday.
He made the remarks in an opening speech as the State Great Khural or the 76-seat unicameral parliament kicked off its spring session.
Noting that the fourth wave of COVID-19 infections is slowing down in the country, Zandanshatar called on the government, the private sector and the public to "unite and move forward with full confidence to restore the country's economy and improve people's livelihoods by consistently implement the post-pandemic new revival policy."
Last December, Mongolia introduced a new policy to revive the country's economy amid the COVID-19 pandemic, which includes comprehensive reforms in such fields as port, energy, industry, green development and government productivity.
During the nearly three-month spring session, legislators are expected to discuss draft laws and regulations concerning the country's society, economy and health.
Source: Xinhua
See also: Spring session of State Great Khural opens
UNGA ADOPTS A RESOLUTION ENTITLED ‘INTERNATIONAL YEAR OF RANGELANDS AND PASTORALISTS, 2026’ AT THE INITIATIVE OF MONGOLIA
On 15 March 2022, the UN General Assembly unanimously adopted a resolution entitled ‘International Year of Rangelands and Pastoralists, 2026’ at the initiative of Mongolia.
Currently, pastureland accounts for more than half of the world’s land with over 200 million people raising livestock in pastoral and agro-pastoral systems across all regions, and the sector plays a significant role in the global economy and achievement of the Sustainable Development Goals. However, in recent years, on the one hand, rangelands and pastures have been affected by increasing climate variability and soil degradation, and on the other hand, pastoralists are facing many problems, including insecure tenure rights and land use change as well as limited access to markets, education and health services. Therefore, for the pastoral populations and for the global sustainable development, in 2018, the Government of Mongolia put forward an initiative to proclaim the International Year of Rangelands and Pastoralists…
Source: Montsame
DELEGATION LED BY MINING MINISTER VISITS ST PETERSBURG INTERNATIONAL MERCANTILE EXCHANGE
Minister of Mining and Heavy Industry G.Yondon, MP J.Bat-Erdene and representatives of the Ministry of Mining and Heavy Industry visited the St Petersburg International Mercantile Exchange (SPIMEX) in Moscow, Russia on March 9.
They held a meeting with representatives led by SPIMEX President Alexei Rybnikov to discuss the exchange’s trading rules, regulations governing the exchange, what benefits public and private companies enjoy when they trade on the exchange, launch of trading in coal and management of its operations in connection with the Mongolian cabinet’s submission of the bill on mining stock exchange. The Russian side also showed the delegation their online platform and the trades being undertaken at the time of the meeting.
Established in 2008, SPIMEX is the biggest commodity exchange in Russia that offers a wide range of products in exchange-traded refined products, crude oil, natural gas, timber and construction materials as well as derivatives.
Source: Montsame
LIVESTOCK RAW MATERIALS TRACEABILITY SYSTEM HANDED OVER TO MINISTRY OF AGRICULTURE
State Secretary of the Ministry of Food, Agriculture and Light Industry T.Jambaltseren received the Livestock Raw Material Traceability System developed by the Swiss Agency for Development and Cooperation together with relevant documents and databases.
The agency, which first launched a humanitarian project in Mongolia in 1999-2000 to help herders heavily affected by dzud, a natural disaster resulting from summer drought, combined with heavy, winter snow, has implemented the Green Gold and Animal Health project to improve the livelihoods of herders through proper rangeland use, creation of new market opportunities, and support in developing a favorable policy framework.
As part of the project, ‘Responsible Nomads’ standard and code of practice for Sustainable Nomadic Livestock Production and its digital traceability system were developed to certify the origin and quality of Mongolian animal raw materials, to assure that the products were supplied in a way that does not harm the rangeland, environment and the livestock, increase the products’ market competitiveness and value, and support herders’ income.
Source: Montsame
CONSTITUTIONAL CHANGE IMPROVES ENVIRONMENTAL IMPACT TRANSPARENCY
The Parliament of Mongolia amended the Constitution of Mongolia on November 14, 2019, according to the second part of Article 6.2 of the Constitution of Mongolia “… By using subsoil resources within the right of citizens to live in a healthy and safe environment have the right to know about the impact on the environment”.
In order to exercise this constitutional right, the Law on Environmental Protection and the Law on Environmental Impact Assessment provide for measures to be taken by citizens to monitor the status of subsoil use, environmental impact, rehabilitation and monitoring by the authorities. The legal regulation of the right to know and the legal regulation of the exercise of constitutional rights are in the process of being approved.
This is very important regulation. There are frequent tripartite disputes between citizens and company using subsoils or project implementer and local authorities such as Governor and Citizens’ Representative Meeting.
Source: LehmanLaw Mongolia
SOME RAILWAY PROJECTS TO BE IMPLEMENTED UNDER ‘DESIGN-BUILD-OPERATE-TRANSFER’ CONCESSION AGREEMENTS
At its regular meeting on March 16, the Cabinet ordered Minister of Road and Transport Development L.Khaltar to meet with and select from foreign and domestic investors interested in cooperating on the projects to be implemented under ‘design-build-operate-transfer’ concession agreements.
The special purpose companies will be granted concessions, get relevant permissions to implement the projects and carry out the construction works in collaboration with the private sector with the selection of investors to fund and cooperate on the projects.
Mongolian Railway company will transport on the railway upon the completion of the construction and when the concession agreements expire, the ownership of the basic structure of the railway will be transferred to Mongolian Railway.
‘Artssuuri-Nariinsukhait-Shiveekhuren Railway’ and ‘Choibalsan-Khuut-Bichigt Railway’ special purpose companies will be established to implement the Artssuuri-Nariinsukhait-Shiveekhuren, Khuut-Choibalsan, and Khuut-Bichigt railway projects with the involvement of ‘Mongolian Railway' state-owned shareholding company.
Source: Montsame
LATEST ON COVID-19 IN MONGOLIA
Below are headlines from the past week concerning Covid-19 in Mongolia:
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