1 ‘ASIAN DOOR 2018’ FAIR KICKS OFF WWW.MONTSAME.MN PUBLISHED:2018/11/21      2 BEYOND BITCOIN: THE OTHER CRYPTOCURRENCIES YOU SHOULD KNOW TOO WWW.CNN.COM PUBLISHED:2018/11/21      3 ATTRACTING INVESTMENT FROM FRANCE TO AGRICULTURAL SECTOR WWW.MONTSAME.MN PUBLISHED:2018/11/21      4 MONGOLIA AND RUSSIA TO EXPAND COOPERATION IN TRANSPORT SECTOR WWW.MONTSAME.MN PUBLISHED:2018/11/21      5 NEWLY-OPENED CHINA-MONGOLIA FRIENDSHIP CULTURAL CENTER TO BOOST TIES WWW.CHINA.ORG.CN PUBLISHED:2018/11/21      6 UN APPRECIATES MONGOLIA’S CONTRIBUTIONS FOR NORTHEAST ASIA WWW.NEWS.MN PUBLISHED:2018/11/21      7 BHP OFFICIALLY DROPS 'BILLITON' FROM NAME WWW.MINING.COM PUBLISHED:2018/11/21      8 THE NOTICE: WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/11/21      9 IRKUTSK REGION SUPPLIES USD 31 MILLION PRODUCTS TO MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      10 27 PARLIAMENT MEMBERS SUBMIT PETITION ON CABINET DISSOLUTION WWW.ZGM.MN PUBLISHED:2018/11/20      ОРОН СУУЦНЫ БАРИЛГЫН ӨРТГИЙН ИНДЕКС III УЛИРАЛД ЖИЛИЙН ДҮНГЭЭР 15 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/21     САЙЖРУУЛСАН ТҮЛШНИЙ БОРЛУУЛАЛТ УДААШИРЧЭЭ WWW.ZGM.MN НИЙТЭЛСЭН:2018/11/21     ЗАСГИЙН ГАЗРЫН ТОГТВОРГҮЙ БАЙДЛААС ҮҮДЭЖ “ГЭРЭГЭ” БОНДЫН ХАНШ БУУРЧЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/11/21     ЭДИЙН ЗАСГИЙН ӨСӨЛТ 7.1 ХУВЬД ХҮРНЭ ГЭВ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/21     ТӨРИЙН ҮЙЛЧИЛГЭЭ ЦАХИМД ШИЛЖЛЭЭ WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/21     УЛААН БУУДАЙ, ТӨМСНИЙ ДОТООДЫНХОО ХЭРЭГЦЭЭГ БҮРЭН ХАНГАНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/21     "ГУДАМЖ" ТӨСЛИЙН 14 БАЙРШЛЫН, 50 ТЭРБУМ ТӨГРӨГИЙН БАЙГУУЛАМЖИЙГ НИЙСЛЭЛИЙН ӨМЧИД БҮРТГЭЖ АВЛАА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/21     САНАМЖ: WWW.MONGOLIANBUSINESSDATABASE.COM НИЙТЭЛСЭН:2018/11/21     ЭРЧИМ ХҮЧНИЙ ИХ АЧААЛАЛ 973 МВТ-Д ХҮРЧЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/20     ЗАСГИЙН ГАЗРЫГ ОГЦРУУЛАХ БИЧИГ ӨРГӨН БАРЬСНЫ ДАРАА "ГЭРЭГЭ" БОНДЫН ХАНШ БУУРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/20    

Events

Name organizer Where
Frontier's "Invest Mongolia Tokyo 2018" Frontier Securities Tokyo Japan
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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2030 development plans for three major cities approved www.montsame.mn

Ulaanbaatar /MONTSAME/ The Cabinet approved the 2030 General Development Plans for Khovd, provincial center of Khovd aimag, Choibalsan, provincial center of Dornod aimag and Baganuur distrirct of Ulaanbaatar on December 20.

Khovd city will be developed as a green development model, and a western region hub for preservation and promotion of multi-ethnic culture and heritage, and development of education, science, information, international tourism, transport and logistics spheres and an industrial park.

Eastern region's tourism, external trade, transport and logistics, agriculture, agricultural industry and industrial park will center in Choibalsan city, the fourth largest city of Mongolia.

Baganuur city is projected to become an eco-friendly manufacturer, combining mining and SMEs, promoting responsible mining, developing tourism and SMEs and reducing unemployment and poverty.

The General Development Plans were formulated based on indicators including the national and regional economic growth, role of cities in population distribution and density, infrastructure capacity and national social and economic development directions. The cities can attract foreign investment with effective utilization of their geographic advantage, the Cabinet sees.

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Problems of over centralization www.theubpost.mn

Mongolia is the 19th biggest country in the world, in terms of territory, with over 1.5 million square km of land, which means only 1.76 people live in one square km area on average.

Although the country is sparsely populated in the countryside, it is densely populated in the capital. The gross area of Ulaanbaatar accounts for only 0.3 percent of the national territory, but nearly half of the total population is concentrated in the city. Three hundred people live in one square km area in Ulaanbaatar. As of January this year, the population of Ulaanbaatar was 1.38 million. This is 45.1 percent of the population of Mongolia.

The population in the capital has been increasing year by year due to the increase of birth rate and the steady rise of migration from the countryside to Ulaanbaatar. Mongolian herdsmen are those who keep the traditional nomadic lifestyle with its cultural heritage and it’s an irremovable part of this country. If the migration to the city carries on constantly the number of herdsmen will keep decreasing. Since 1990, 590,000 people migrated from the countryside to the capital, and over 120,000 people moved to rural areas from the city. Accordingly, there will be a need to build new schools and kindergartens despite of the fact that it is still not enough. This over-centralization causes many problems.

First of all, the population growth causes excessive traffic congestion in urban area of Ulaanbaatar and increases the number of ger districts. There are approximately 460,000 vehicles used for more than 10 years and around 202,000 ger area families in Ulaanbaatar, which are the biggest factors of air hazardous level of air pollution.

Air pollution is one of the most serious environmental problems confronting our society today, if not the greatest. In Ulaanbaatar’s case, air pollution is caused by human activities such as coal burning, mining, construction, transportation, and industrial work.

The amount of dust particulate levels in the air are four times higher than the World Health Organization (WHO)’s target for developing countries, and 14 times higher than WHO’s global guidelines. Air pollution has terrible effects on the health of citizens, especially children and pregnant mothers.

According to a research by Kirk R. Smith, an expert on the health and climate effects of household energy use in developing nations and was recognized by the joint award of the 2007 Nobel Peace Prize, air pollution has direct impact on delivery complications, miscarriage, maternal mortality, intracranial pressure andchronic diseases of lung and heart.

“Children who are born in air polluted cities have slower brain processing speeds and irretentive memory,” Smith says. Infant mortality rate in Mongolia was 486 in 2012 and has increased constantly and reached 611 in 2016.

There also other risks that many to over centralization such as vulnerability to natural disasters such as wildfires, and less commonly, earthquakes. Mongolia has experienced four major earthquakes (Ms>8) and many more moderate earthquakes (Ms 5.3-7.5) in this century. According to the information given by D.Saruul , Hiroshi Kawase and Narenmandula Ho at the 13th World Conference on Earthquake Engineering in Vancouver, Canada, the extremely thin population distribution of Mongolia has contributed to a low impact from the seismic activities of the past. However, because of its shared importance as the political, economic, and population center of the nation, Ulaanbaatar could face a considerable earthquake risk. Ulaanbaatar is the junction point of all the country’s major roads, railway and air service. As the city is situated on the fluvial sediments of the Tuul River, it is susceptible to risks from earthquakes. The majority of existing pre-80`s housing structures are reasonably well built. However, because of the lack of maintenance and the ongoing alterations in their structures, these buildings could pose a serious threat to public safety in the event of an earthquake.

Another factor influencing over centralization is that Ulaanbaatar is the economic and educational hub of the national.

Some 64.3 percent of the total population of the capital city is under 35 years of age, which is directly linked to the number of higher learning institutes. Currently, Mongolia has 95 universities and colleges nationwide (17 state universities and 74 private universities). Some 143,684 students out of the total 157,138 are living in Ulaanbaatar due to 87 universities in the capital city. If most of the bigger universities move to rural areas with their campuses, Ulaanbaatar could potentially have its clear blue sky back and experience less traffic jams. Furthermore, this centralization of institutes contributes to the development of infrastructure and workplaces in the countryside.

In order to eliminate most of the problems related to over centralization, it is vital for the government to work together with citizens. If the government supports projects to develop rural settlements instead of spending on unsuccessful projects to decrease the air pollution, more and more people might realize there are better living opportunities available than that offered by the capital.

Moreover, every province and soum should formulate a plan to attract young and educated people through good job opportunities and clean living environment. This way, Ulaanbaatar’s problems related to over centralization can be gradually and sustainably resolved, bringing back the “eternal blue sky” Mongolia was so famous for.

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Mongolia to revise tax legislation www.montsame.mn

Ulaanbaatar /MONTSAME/ The Cabinet resolved that Mongolia should join the Organization for Economic Cooperation and Development’s Global Forum on Transparency and Exchange of Information for Tax Purposes and the Inclusive Framework on Base Erosion and Profit Shifting (BEPS).

The matter was discussed at the Cabinet’s regular meeting on December 20, and Mongolia’s decision to forward a request to join comes after the EU blacklist of tax havens, which includes Mongolia.

Corresponding Ministers were assigned to study the necessity to sign the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting and Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

The Cabinet assigned Finance Minister Ch.Khurelbaatar and advised Mongolbank Governor N.Bayartsaikhan to take measures to create the legal environment for exchange of information from customer database of banking and financial institutions for only tax purposes.

The Finance Minister was also instructed to revise and make necessary amendments to some laws in order to improve the legal environment surrounding tax, and introduce the bills within the first season of 2018.

The Cabinet sees that Mongolia was blacklisted for failing to join the Global Forum on Transparency and Exchange of Information for Tax Purposes and comply with the BEPS initiative. In order to leave the list, Mongolia must join and express its affirmative stance on the conventions.

If the domestic legislations permit the tax authority gain access to bank information, it will also create access to the activities of Mongolian taxpayers in foreign financial institutes.

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Boosting Mongolia’s smallest firms with US$ 40 million loan www.ebrd.com

The EBRD is providing a US$ 40 million syndicated loan to Mongolia’s XacBank for financing private micro, small and medium-sized enterprises (MSMEs) around the country. The operation will enable XacBank to continue to provide much-needed funding to MSMEs.

“The project focuses on maintaining XacBank's regional penetration and on attracting new MSME clients, which will ultimately promote the competitiveness and resilience of the local economy,” said Nick Tesseyman, EBRD Managing Director for Financial Institutions, who signed the project with XacBank’s CEO, Bold Magvan.

Bold Magvan added: “We are pleased to express our gratitude to our long-standing partner, the EBRD, for their professionalism and goodwill in leading yet another successful syndication for XacBank. The loan proceeds will be deployed to fund MSMEs, which are the heart of job creation and economic growth in Mongolia. Ultimately, XacBank will be able to contribute to improving the well-being of the Mongolian people.”

In her speech at the signing ceremony, Natasha Khanjenkova, EBRD Managing Director for Central Asia, Russia and Mongolia, said: “We are proud to be supporting the micro, small and medium-sized businesses in Mongolia and contributing to the recovery and sustainable development of the country’s economy together with such worthy and longstanding partners as XacBank”..

Xacbank is the fourth largest bank in Mongolia (measured by total assets and loan portfolio). An EBRD client since 2006, it has historically been focused on MSMEs. This loan follows up on similar loans previously extended by the EBRD to Xacbank, including the first syndicated loan to a Mongolian FI which will be repaid by the end of 2017.

The loan is split between US$ 10 million A loan provided by the EBRD from its own account and US$ 30 million B loan provided by a syndicate of lenders consisting of TRANSKAPITALBANK, IIV-Mikrofinanzfonds, BANK IM BISTUM ESSEN EG, and responsAbility SICAV (Lux) (acting for its sub-funds responsAbility SICAV (Lux) Mikro- und KMU-Finanz-Fonds, responsAbility Sicav (Lux) Micro and SME Finance Leaders, and responsAbility SICAV (Lux) Financial Inclusion Fund).

This will also be the first syndicated loan to a Mongolian FI since the country’s recent economic difficulties and the first syndicated loan since a new IMF programme was put into place.

The EBRD is a leading institutional investor in Mongolia, with over €1.424 billion invested in over 92 projects in the country to date. The Bank’s investments aim to make the local economy more competitive, integrated and resilient.

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Bitcoin crashes 15% as cryptocurrency investors pour money into bitcoin cash www.rt.com

The bitcoin sell-off continued on Wednesday after the leading platform for buying and selling the cryptocurrency, Coinbase, announced it was rolling out support for rival bitcoin cash.

“Sends and receives are available immediately. Buys and sells will be available to all customers once there is sufficient liquidity on GDAX. We anticipate that this will take a few hours,” the exchange announced in a blog post on Tuesday.

Coinbase said in an updated tweet that buying and selling would likely not be available until Wednesday. Bitcoin cash trading has also been suspended on GDAX until noon on Wednesday.

The news sent the value of bitcoin cash soaring more than 50 percent to $3,800 per coin. It then retreated to $3,549 per coin as of 7:20 GMT.

The original bitcoin, which was trading at more than $19,000 on Tuesday, slid to $16,353 in less than 24 hours.

Bitcoin cash split off from bitcoin on August 1 after a group of developers decided to try to improve transaction speeds and costs. The majority of those who supported the conventional bitcoin failed to reach an agreement this fall on their own upgrade proposal – SegWit2x.

At first, the split did not impact the price of bitcoin. The newly minted bitcoin cash became worth around $600 per token. However, since August, the value of all bitcoin cash in circulation has soared from about $10 billion to $60 billion.

Bitcoin payment processor BitPay and major cryptocurrency storage company Blockchain recently said they would support bitcoin cash.

The community of bitcoin supporters have also split into rival camps, with some shifting to bitcoin cash.

The co-founder of Bitcoin.com, Emil Oldenburg, recently criticized the cryptocurrency as the “most risky investment you can make,” after he transferred his investment to bitcoin cash. He has encouraged investors to sell the “high risk” bitcoin, calling bitcoin cash “the future.”

“I’ve actually sold all my bitcoins recently and switched to bitcoin cash,” Oldenburg said. “As soon as people realise that this is how it works, [they] will start selling.”

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Agriculture exports reach 1.1 billion USD in 2017 www.mongolia.gogo.mn

Agriculture exports have so far totaled 1.1 billion USD in 2017. Meat exports make up the majority of export products with 24,000 tons of meat exported in 2017, valued at 108 billion MNT.

Specialists note that increasing meat exports are linked to the number of new meat processing factories that opened in 2017. Ninety percent of the exported meat was horse meat. Due to the spread of infectious livestock diseases, exports of mutton and beef were lower than expected in 2017.
The Mongolian Wool and Cashmere Association reports that wool and cashmere companies saw revenue surpluses in 2017. Cashmere companies produced 800 billion MNT in brushed cashmere and exported 70 percent of their products.
Within the past year, 20 new wool and cashmere factories have opened and Gobi Cashmere opened six new branches overseas.
In 2017, the nation's wheat harvest was 50 percent less than it was in 2016, and 225,000 tons of Russian wheat is being imported.

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December 20, 2017 trading report www.mse.mn

On December 20, 2017, 367,586 shares of 28 firms listed as Tier I, II, and III were traded. 14 firms’ shares increased in price, 12 decreased and 2 firms' share unchanged. Jinst Uvs /JIV/ were the top performers, increasing 15.00 percent each, whereas Merex JSC /MRX/ was the worst performer, decreasing 13.43 percent.

On the secondary market for government bonds, 2,318 bonds with a value of MNT229.0 million were traded.

The MSE ALL Index increased by 1.87 percent to stand at 1,184.74 points. The MSE market cap stands at MNT2,499,811,547,546.

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YouTube signs Universal Music deal amid subscription plans www.bbc.com

YouTube has signed a second global, multi-year agreement with a major music label, amid plans to expand its subscription businesses.

Universal Music Group said the deal would provide its artists more flexibility and pay, and strengthen YouTube's commitment to managing music rights.
The firm represents artists including Taylor Swift and Jay-Z.
YouTube also reached a deal with Warner Music Group in May.
Bloomberg has reported that the negotiations come in advance of YouTube's launch of a new paid music service that is expected to go live in March 2018.
A spokeswoman for YouTube declined to comment on those plans. The investment would add competition to the music streaming business, where firms such as Spotify, Apple and Amazon are already active.
Alphabet, which owns Google and YouTube, has previously said it is investing in the site, paying more to acquire content, and making the expansion of YouTube's subscription business a priority.
It already offers paid YouTube television subscriptions and has experimented earlier with music plans.
YouTube chief executive Susan Wojcicki said: "We're thrilled to strengthen our partnership with Universal Music Group. This agreement means we can drive more value to the industry, break and support more artists and deliver an incredible music experience to fans around the world."
Sony Entertainment Group, which Bloomberg reported had also struck a deal with YouTube, declined to comment.

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MCC board reselects Mongolia to continue developing a compact www.montsame.mn

Ulaanbaatar/MONTSAME/ At its quarterly meeting on December 19, the U.S. Government’s Millennium Challenge Corporation (MCC) Board of Directors reselected Mongolia, Burkina Faso, Senegal, Sri Lanka, and Tunisia, enabling the development of compacts in those countries to continue.

It also selected Timor-Leste for a compact– MCC’s five-year grant program designed to spur economic growth and reduce poverty and selected the Gambia for a threshold program – MCC’s smaller grant program focused on policy and institutional reform.

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Southern Mongolia: SMHRIC Announces Release of Book Commemorating Genocide Against Mongolian People www.unpo.org

Commemorating the Human Rights Day on December 10, 2017, the Southern Mongolian Human Rights Information Center (SMHRIC) announced the release of the Genocide on the Mongolian Steppe: First-hand Accounts of Genocide in Southern Mongolia during the Chinese Cultural Revolution (Volume I) (published by Xlibris), a book translated by SMHRIC Director Enghebatu Togochog from Japanese to English.

Both Enghebatu Togochog and Professor Yang Haiying, author of the original book entitled BOHYO NAKI SOGEN in Japanese, believe that the genocide of the Mongolian people during China’s Cultural Revolution was a crime against humanity that has remained largely hidden from the view of history.

“This book is dedicated to the memory of tens of thousands of innocent Mongolians who lost their lives in a massive genocide carried out in the Chinese-occupied Southern Mongolia 50 years ago,” Togochog noted in the “Translator’s Acknowledgment” of the book.

In 1967, two decades after its successful annexation of Southern Mongolia, the Chinese Communist regime launched a carefully-planned campaign of genocide against the entire Mongolian population in Southern Mongolia. It was known as the “Purge of Members of the National Separatist Organization Southern Mongolian People’s Revolutionary Party”. According to Chinese official statistics, 346,000 Mongolians were persecuted as national separatists and anti-revolutionaries, and 27,900 were killed. The Mongolians widely believe the actual numbers of the victims are much higher than the Chinese official figures. 

“In an extravagant display of power, wealth and military resolve, the Chinese regime celebrated 70 years of colonial occupation of Southern Mongolia this year,” Togochog states in the acknowledgement, “the exuberance is starkly juxtaposed with the reality of Southern Mongolia, that an independent nation can be reduced to an ‘ethnic group’, a vast and beautiful territory can be turned into a mining pit, and a vibrant culture can be trivialized to a window display within a matter of a few decades.”

“Yet, what the Chinese did not count on is that a nation of six million strong with a fresh memory of historical sovereignty and an uncompromising national identity cannot be easily wiped out,” Togochog continues, “this means resilience and resistance are a permanent pair that makes the ‘Chinese dream’ not so pleasant.”

Highlighting the strengthening resistance movements including the rural herders’ uprisings, Mongolian intellectual’s demand for their legal rights, and the tireless struggle of courageous dissidents like Hada, Xinna, Huuchinhuu and others who dedicated their lives to the cause of freedom of Southern Mongolia, Togochog writes in the acknowledgment that “thus, this book honors these brave Mongolian men and women who have willingly sacrificed their life and liberty to keep the spirit of self-determination and the aspiration for freedom alive during these most difficult times.”

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