1 FOREIGN RELATIONS OF MONGOLIA’S ROAD TRANSPORT SECTOR BROADENING WWW.MONTSAME.MN PUBLISHED:2019/02/21      2 MONGOLIA EXPRESSES READINESS TO CONTRIBUTE TO STRENGTHENING ASIA-EUROPE COOPERATION WWW.MONTSAME.MN PUBLISHED:2019/02/21      3 OYU TOLGOI FUNDED 35.1 KM ROAD OPENS IN KHANBOGD WWW.GOGO.MN PUBLISHED:2019/02/21      4 POLYMER BITUMEN TO BE DOMESTICALLY PRODUCED WWW.MONTSAME.MN PUBLISHED:2019/02/21      5 KHURELBAATAR CHIMED: 319 ENTITIES DREW LOANS FROM TWO FUNDS WWW.ZGM.MN PUBLISHED:2019/02/21      6 CONSTRUCTION OF TAVANTOLGOI-GASHUUNSUKHAIT ROAD TO BE INTENSIFIED WWW.MONTSAME.MN PUBLISHED:2019/02/20      7 OVER 30 MEASURES PLANNED FOR REDUCTION OF ENVIRONMENTAL POLLUTION WWW.MONTSAME.MN PUBLISHED:2019/02/20      8 MONGOLIA SAYS IT EARNS OVER 169 MLN USD FROM COAL EXPORTS TO CHINA IN JAN WWW.HELLENICSHIPPINGNEWS.COM  PUBLISHED:2019/02/20      9 RUSSIA’S GAZPROM TO START CHINA GAS PIPELINE BY DECEMBER 1 WWW.RT.COM PUBLISHED:2019/02/20      10 MONGOLIA'S FOREIGN TRADE UP 41.6 PCT IN JAN. WWW.XINHUANET.COM PUBLISHED:2019/02/20      УГСАРМАЛ ОРОН СУУЦНЫ ДУЛААЛГАД ЗОРИУЛЖ 12.7 ТЭРБУМ ТӨГРӨГИЙГ УЛСЫН ТӨСВӨӨС ГАРГАХААР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/21     2018ОНД ЦАГААН БУДАА , ЭЛСЭН ЧИХЭР , ТАХИАНЫ МАХНЫ ИМПОРТ 24-32 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ДЦС IV: 2018 ОНД НИЙТ АШИГ 4.7 ДАХИН ӨСӨЖ , 4.48 ТЭРБУМ ТӨГРӨГ БОЛСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ТУСГАЙ САНГУУДААС ГАРГАСАН ЗЭЭЛИЙН 100 ОРЧИМ ТЭРБУМ ТӨГРӨГ ХУГАЦАА ХЭТЭРСЭН ӨР БОЛЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     МОНГОЛ УЛСЫН БОРЛУУЛАЛТЫН МЕНЕЖЕРҮҮДИЙН ИНДЕКС СҮҮЛИЙН 12 САРД АНХ УДАА УНАЛТЫН БҮСЭД ШИЛЖИВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     2018 ОНД ХАМГИЙН ЧИНЭЭЛЭГ БҮЛГИЙН ХЭРЭГЛЭЭ ЯДУУ БҮЛГИЙНХНЭЭС 5.1 ДАХИН ИХ БАЙВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     ХОВД ГОЛД ОСОЛДСОН 6 НАСТАЙ ХҮҮХДИЙН ЭРЛИЙГ ЗОГСООЛОО WWW.MONTSAME.MN НИЙТЭЛСЭН:2019/02/21     ДБНХ-НООС П.ОРХОНЫ БАРИЛДАХ ЭРХИЙГ 4 ЖИЛЭЭР ХАСАВ WWW.MONTSAME.MN  НИЙТЭЛСЭН:2019/02/21     УУХҮЯ: II САРЫН БАЙДЛААР НИЙТ НУТАГ ДЭВСГЭРИЙН 5.6 ХУВЬД АШИГТ МАЛТМАЛЫН ЛИЦЕНЗ ОЛГОСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/20     300 ОРТОЙ ТӨРӨХ ЭМНЭЛГИЙН БАРИЛГЫН АЖИЛ 80%-Д ХҮРЧ ГУРАВДУГААР САРЫН 1-НЭЭС ДУЛААНД ХОЛБОГДОХООР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/20    

Events

Name organizer Where
“Doing business with Mongolia”, “UK Investors show” бизнес хөтөлбөр March 27-April 02. 2019 ЛОНДОН ХОТ, ИХ БРИТАНИ Mongolian Business Database London UK
SYMPOSIUM ON GLOBAL MARKETS Nationalism and Protectionism: The United States in the International Arena June 17-18, 2019 The Center for American and International Law Plano, Texas, USA The Center for American and International Law (CAILAW) Plano Texas June 17-18 2019
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

64x64

Japan's Denso considering $440 million investment in JOLED: Kyodo www.reuters.com

TOKYO (Reuters) - Japanese auto parts maker Denso Corp is considering a 50 billion yen ($440 million) investment in organic light-emitting diode (OLED) panel maker JOLED, Kyodo news reported, citing sources close to the matter.

JOLED, a Japan Display affiliate, sold its inaugural batch of OLED screens this month, becoming the world’s first OLED maker to market screens which use a lower cost printing process.

It is seeking to raise 100 billion yen from materials, equipment and electronics makers to expand production capacity.

Sony Corp and Panasonic Corp are also expected to invest 5 to 10 billion yen each, and Sumitomo Chemical Co and Screen Holdings Co are considering chipping in, Kyodo said.

The four companies are together seen investing 20 to 40 billion yen in JOLED, Kyodo added.

OLED screens are gaining popularity as they are generally thinner, more flexible and offer richer colors than liquid crystal display (LCD) panels, but high production costs are still preventing them from being used widely. Apple Inc has adopted the screens for its iPhone X.

A JOLED representative said the company was in talks with various materials and equipment makers about the investment, but that nothing specific had been decided.

A Denso spokesman said the reported plan wasn’t something the company announced, while a Screen Holdings spokeswoman denied the company was considering the investment. Sony said nothing had been decided, while Panasonic and Sumitomo Chemical declined comment.

JOLED was created in 2015 by merging the OLED divisions of Sony and Panasonic. JOLED is 75 percent owned by a state-backed fund, the Innovation Network Corporation of Japan, and 15 percent held by Japan Display. Sony and Panasonic each own 5 percent.

...


64x64

President of Mongolia Khaltmaagiin Battulga telephoned President Ilham Aliyev www.azertag.az

President of Mongolia Khaltmaagiin Battulga made a phone call to President of the Republic of Azerbaijan Ilham Aliyev on December 25. 

Khaltmaagiin Battulga congratulated President Ilham Aliyev on his birthday, and wished him success in his presidential activity and robust health.

President Ilham Aliyev thanked for the attention and congratulations.

The presidents hailed good opportunities for developing bilateral relations between the two countries in a variety of fields.

...


64x64

Mongolian Chess Federation named as best organizer federation of Asia - 2017 www.montsame.mn

Ulaanbaatar /MONTSAME/ The Mongolian Chess Federation received the award ‘Organizer of the Year’ at the 4th Annual Asian Chess Excellence Awards in Al Ain, the United Arab Emirates on December 23.

In 2016, the Mongolian Chess Federation was selected as ‘Chess Movement of the Year World Under-16 Olympiad’ out of 52 countries.

Held for the fourth year, President of the Mongolian Chess Federation Ts.Sainbayar and First Deputy President and Parliamentary Deputy Speaker Ya.Sanjmyatav participated in the award ceremony.

During the ceremony, President of the World Chess Federation Kirsan Ilyumzhinov expressed gratitude to Mr Ts.Sainbayar for developing chess sport in Mongolia.

...


64x64

December 25, 2017 trading report www.mse.mn

On December 25, 2017, 1,194,522 shares of 29 firms listed as Tier I, II, and III were traded. 12 companies’ shares increased in price while those of 17 companies decreased. Nogoon Khogjil Undesnii Negdel /JLT +14.95%/, Jinst Uvs /JIV +14.94%/, and Remicon /RMC +13.49%/ were the top performers whereas Uvs Chatsargana JSC /CHR/ was the worst performer, decreasing 15.00 percent.

On the secondary market for corporate bonds, 1,089 bonds were traded for the value of MNT108.8 million.

The MSE ALL Index decreased by 2.68 percent to reach 1,104.01 points. The MSE market cap stands at MNT2,357,591,879,485.

...


64x64

Centerra Gold Files Technical Report for Gatsuurt Project www.centerragold.com

Centerra Gold Inc. (TSX: CG) today announces that the Company has filed on SEDAR a Technical Report, entitled “Technical Report on the Gatsuurt Gold Project, Mongolia” dated December 22, 2017 with an effective date of October 31, 2017. The report was prepared in compliance with National Instrument 43-101 – Standards for Disclosure for Mineral Projects. The Technical Report supports the disclosure of the mineral reserves and resources for the Gatsuurt Project contained in Centerra’s news release issued on October 31, 2017. The report also provides further information on the project’s mineral reserve and mineral resource estimates, an updated life-of-mine plan, expected grades and recoveries, development plans, mining methods and metrics including strip ratio, recovery process and production expectations including expected cash flows, capital cost estimates and expected life-of-mine operating costs. The Technical Report was prepared for Centerra by Mr. Chris Sharpe, P.Eng., Kevin P.C.J. D’Souza, C.Eng. and Boris Kotlyar, P.Geo. (each of whom is an employee of Centerra or a subsidiary of Centerra), Mr. Tommaso Roberto Raponi, P.Eng. from T.R. Raponi Consulting Limited, Mr. Lars Weiershäuser , P.Geo. from Roscoe Postle Associates Inc., Mr. Igor Bojanic, from Runge Pincock Minarco, Mr. William Pitman, P.Eng. from Adiuvare Geology and Engineering Ltd. and Mr. Christopher Jacobs, C.Eng. from Micon-International, who are the qualified persons for the technical report for the purposes of NI 43-101, under the supervision of Gordon Reid, Professional Engineer and Centerra’s Vice President and Chief Operating Officer.

...


64x64

Parliament discusses key issues before the end of the year www.mongolia.gogo.mn

Parliament established a Budget Sustainability Council during its December 22 plenary session.

The council will mainly focus on researching and analyzing the coherence of the state budget and its amendments, drafting recommendations for legislators, reviewing mid-term budget announcements, and developing the economy and society with amendments to the Law on Fiscal Stability.
Amendments to the law will be focused on ensuring the sustainability of the state's budget and financing, as well as the efficacy of the state budget. The council will consist of chairman and eight staff members. Parliament supported proposed customs and value-added tax exemptions for certain energy imports upon their first review.
The exemptions will reduce import costs for state-owned Western Energy System's energy imports from China and Russia through January 1, 2021. During the session, the Governor of the Bank of Mongolia N. Bayartsaikhan spoke about reducing the foreign currency exchange rate and strengthening the purchasing power of the tugrug.
The BoM stated that it agreed with MP T. Ayursaikhan about disabling foreign exchange accounts except for those held by entities, individuals, banks, and non-banking financial institutions that have forex income, but the BoM noted that the process should be carried out through market mechanisms rather than a direct ban.

...


64x64

26,800 tons of meat exported in 2017 www.mongolia.gogo.mn

In 2017, 26,800 tons of Mongolian meat was exported at a value of 111 billion MNT.

Due to the spread of infectious livestock disease, China only imported horse meat from Mongolia. China's horse meat imports (18 tons out of 24 tons exported) increased the nation's overall meat export by three percent over 2016.
Beef export (560 tons) was only carried out with Russia. In total of 2,400 tons of lamb was exported to Iran and Qatar. Twelve companies had special permits for exporting meat to China renewed.
Chinese officials stated that new special permits will be granted in 2018 after the cancellation of quarantine procedures in three Mongolian provinces.

...


64x64

Legal status of Ulaanbaatar under review www.theubpost.mn

Parliament’s State Structure Standing Committee and the Ulaanbaatar Mayor’s Office hosted a discussion on the amendments to the capital’s legal status on December 20 at the State Palace.

Senior Advisor to the Mayor of Ulaanbaatar D.Munkh-Erdene introduced the amendments at the meeting. D.Munkh-Erdene noted that the Capital’s Legal Status was approved by Parliament in July 5, 1994, and the socio-economic state and population of Ulaanbaatar in 1994 was drastically different than that of today. He cited that 23 years ago, the population of Ulaanbaatar was 589,000, which has risen to 1.3 million, and there are more than 400,000 vehicles registered in Ulaanbaatar, an increase of 19.5 folds since 1994. He added that Ulaanbaatar’s GDP was 44 billion MNT in 1994, which had jumped to 15 trillion MNT in 2016. He emphasized that the extreme changes in these figures highlights the need for the capital to change its legal status.

D.Munkh-Erdene stressed that the authors of the amendments believe that the following changes will stimulate Ulaanbaatar’s development.

Legislate policies being executed by Ulaanbaatar’s leadership
Adopt development models of developed countries’ capitals in Ulaanbaatar
Promote manufacturing through innovate technology based on knowledge
Reform Ulaanbaatar’s administrative rules
Renew the rights and responsibilities of Ulaanbaatar’s residents
Member of Parliament D.Erdenebat noted that legislating policies being executed by Ulaanbaatar’s leadership is unnecessary, and a lot of advantages from urban re-planning and the capital general development plan, which were withdrawn in 2012, should have been included in the amendments.

MP D.Terbishdagva said, “People follow their rights of the Constitution that provide Mongolian citizens with the freedom of movement and residence in any place within the country’s territory, but they are not able enjoy their constitutional rights to a healthy and safe environment and to be protected against environmental pollution and ecological imbalance.” D.Terbishdagva asked D.Munkh-Erdene if any measures and solutions to tackle this challenge have been included in the amendments.

D.Munkh-Erdene pointed out that to reduce rural to urban migration, establishing a satellite town and supporting enterprises that will operate in the satellite town and its residents with tax facilities are outlined in the amendments.

...


64x64

Only 8 percent of workers will be affected by personal income tax increase says Minister of Finance www.theubpost.mn

Coming into effect on January 1, 2018 five new tax will be increased as agreed upon with the International Monetary Fund. The biggest and the most controversial tax increase is the personal income tax.

Starting in 2018, the personal income tax will increase to 15 percent for those earning above 1.5 million MNT. Business owners and miners alike have been opposed to the decision and have staged public protests. Finance Minister Ch.Khurelbaatar took questions from the media at a recent press conference leading up the tax increase.

The decision to increase the personal income tax for high-income individuals was made earlier this year. Many are opposed to this decision. Even some Parliament members are saying that we need to reconsider this issue. What is your stance on this issue?

There are two sides to the issue. In April of this year, Cabinet proposed to Parliament to increase taxes and Parliament ultimately decided. People are only focusing on the highest rates. The tax rate will vary from 10, 15, 20, and 25 percent depending on which tax bracket an individual falls into.

However, 92 percent of workers will pay the 10 percent they have been paying. Therefore, only eight percent of Mongolia’s workforce will be included in the tax increases. On the other hand, those that earn the lowest will have less burden. Depending on inflation and the fluctuations in the exchange rates, the group that earns the lowest suffers the most. This is why we have taken this measure.

The taxes were agreed to be increased as part of Mongolia’s enrollment into the extended fund facility with the International Monetary Fund (IMF). As some Parliament Members have brought up the issue, if we do not increase taxes, would it be a breach of agreement?

Mongolia enrolled into the IMF program in April of this year. Shortly after, the program came to a standstill due to the government providing 100 percent of the child money allowances. A week ago, the Executive Board of IMF reviewed Mongolia’s progress for the extended fund facility and said the program was being implemented successfully.

IMF told us that there was an opportunity to improve the economy and erase debt. If we amend the tax increases now, it will mean going back on what we agreed upon with IMF. Outside of the personal income tax, the tax on alcohol and tobacco is increasing also. I believe many would support this increase. Alcohol is the main cause of various crimes. I imagine very few would protest this increase. Only alcohol producers are protesting this decision.

Will a new type of tax be introduced in 2018? For example, there was a proposal to legislate a tax on livestock. Can you elaborate on this possibility?

We will not be creating any new taxes. In the 2016 election, the Mongolian People’s Party promised to not create any new taxes. It is possible for us to operate within the tax law we have in place right now. Preliminarily, we will focus on improving the fiscal discipline of Mongolia and spending the assets from the state budget wisely. We have the full opportunity to decrease the budget deficit while also improving the financial and fiscal management of Cabinet.

In the past, the government has stored its money and assets in commercial banks and has had to pay an exorbitant amount of money on interest rates for high interest loans to get it back. Since being appointed as Finance Minister, I have not decreed for loan from commercial banks. Funds from foreign aid and assistance that are being used for the implementation of projects will be transferred from commercial banks to the State Treasury Fund. It has not been easy; we have been receiving a lot of pushback. In addition to all of this, we have to monitor the budget spending.

There is a necessity to fully implement the glass account law. All transactions conducted from the state fund must be placed in the glass account. As of right now, all of the projects have been registered in the glass account. At this time, the government has not cut back on its wasteful spending and the financial and fiscal management of Cabinet has not reached a level where taxes can be feasibly increased. We are of the mindset of implementing all of the previously mentioned measures and then taking a look at Mongolia’s internal assets and opportunities.

As part of the budget amendment to the 2017 state budget, all civil servants will be provided with a one-time bonus of 300,000 MNT. At a time when this was being discussed, you said that the bonus would be tax-free. Yet now, civil servants will receive 250,000 to 270,000 after taxes. How did this situation come about?

In the amendment to the 2017 state budget, initially Cabinet proposed to provide a one-time 300,000 grant to all civil servants. When it went to Parliament, it was rebranded as a bonus, most likely due to the climate of Mongolia’s society at the time. The law states that bonuses are subject to a social insurance fee and the personal income tax of 10 percent must also be imposed.

The controversy surrounding Mongolia’s placement in the EU’s tax haven blacklist still hasn’t died down. Is this issue being discussed in Cabinet?

Cabinet will discuss this issue today (December 20). The Finance Ministry is working to improve transparency through reform in the General Law on Taxation, Law on Personal Income Tax, and Law on Corporate Income Tax. This will allow information regarding any foreign nationals registered at Mongolian banks to be reported through the taxation office.

In addition, we will also need to undertake legal reform regarding the shareholder information of foreign nationals in companies registered in Mongolia.

Is it true that a special ambassador will be appointed to resolve this issue?

From what I know, the Foreign Minister is discussing this issue and will be appointing a special ambassador. Ambassadors from various countries, the World Bank and IMF have all expressed regret at Mongolia’s placement in the blacklist. They have expressed that Mongolia is a developing country and it is unfortunate for Mongolia to be included in the blacklist at a time when the Ministry of Finance is taking measures to alleviate the issue. There is now the issue of why the possibility of a blacklist was not mentioned to the Finance Minister at the time or an ambassador at the very least. However, I concede that we do need to improve our legal environment.

...


64x64

'Chinggis Khaan' - the opera to be performed in Seoul www.news.mn

Yo.Baatarbileg, head of the parliamentary standing committee on social policy, education, culture and science received South Korean honoured director Pae Gyong Hwang on 22 December at the State House in Ulaanbaatar.

During the meeting, the two sides discussed the cultural events planned for marking the 30th anniversary of diplomatic relations between Mongolia and South Korean. These celebrations will occur in 2020. In addition, they agreed to perform the opera 'Chinggis Khaan' at the Seoul Grand Opera house.

Mr Baatarbileg has requested Mr Pae for his support in establishing a new Opera House in Ulaanbaatar. Pae Gyong Hwang promised to deliver his proposal to the South Korean Ministry of Arts and Culture.

...