Plenary session on Business Environment, moderated by the Mr. Jargalsaihan, De Facto, economist, starts.
Khaliunbat.Kh, Director, Mongol ID LLC: We stuck MNT 8.7 trillion at construction market
Presentation on Business environment by Mr. Khaliunbat.Kh, Director, Mongol ID LLC.
"Our construction sector has many years of history. Demand is several times higher than the supply on the market. Right now there are many empty housings at the market. Most importantly, increase in supply causes price drop according to the market principle. However housing prices have not decreased yet. We stuck MNT 8.7 trillion in this market.
There is no country, successfully implemented the mortgage loans. Construction sector is heading to wrong way. There are many rude businesses which has no research and marketing analysis.
As we concern on financial market, 88 percent of the bank sector is owned by four banks. ATMs or the cash machines are the most unproductive expenses of this sector. ATMs of all banks crowded the entrance of any shops and stores. All things in Mongolia have no logic. Bank bought the 91.6 percent of total bonds released by the Government. Monopoly seems the image of the business environment in Mongolia. It is related not only to bank sector but also all sectors.
To sum up, business environment has not capability and is unprofessional and politicized. At the beginning of 20th century, we were all similar like now. We changed from that time by wearing suits and using iPhones.
The world connects with all types of infrastructure. But we are staying behind. Mongolia has three million people, one million of which are employed and 1.3 million people are unemployed, students and elders. Also there is still 700 thousand people who are unknown. Therefore, one in every three people works. Reason of unemployment is we grant too much welfare. The investment is the vital spirit of Mongolia.
Competition creates new technology and employment. Thus the competition is the only solution and way to follow. Businesses must accept and agree this. Competition is needed the most at state service.
Mongolia needs to stop giving welfare as well as need to liquidate unprofitable government units.
Our next hope is young generation."
Leading participants of plenary sessions expressed their proposals to improve business environment.
Kh.Ganhuyag, CEO, Hera Holding:
"The Government must tighten its belt like companies."
P.Tsagaan, Head of Presendential Office calls for businesses to warmly welcome the investors rather scaring them away.
Participants criticized that Mongolia has only Ulaanbaatar city economy and it has left the countryside. There is no competition in the countryside.
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