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Monday mood check! Ready to learn something unexpected? Inside Mongolia’s fresh insights await you. Grab your coffee and scroll down. Because while Monday mornings used to start with a newspaper, now they begin with Inside Mongolia’s weekly mail. 🔥

In today’s newsletter:

• 📈 Inflation Update for July 

• 🏢 SEO Privatization 

• ⚡ TMK Energy’s New Partner

No Time to Waste. Let’s Get Started! 🦘

MARKET

NSO: Mongolia’s inflation reached 8.1% in July.

ERDN: Erdene Resource Development Corp registered 50,000 new shares on the Toronto Stock Exchange, increasing the total number of common shares from 365.7 million to 365.8 million.

ADB: In July, the Asian Development Bank issued its third bond denominated in Mongolian MNT, raising a total of ₮30 billion.

🦬 Mongolia’s 20 SOEs Set for Market Makeover

The Government of Mongolia plans to privatize 20 state-owned companies by 2028, aiming to raise ₮3.7 trillion through the sale of 10%–66% stakes via initial public offerings (IPOs) on domestic and international stock exchanges.

• ☝🏻 Key enterprises earmarked for the program include Erdenet Mining Corporation, Erdenes Tavan Tolgoi JSC, Monroscement, MIAT JSC, Agricultural Exchange, Mongolian Reinsurance JSC, and multiple energy sector firms.

🛣️ Roadmap to Market

• 2024–2027: Share sales and conversion of selected enterprises into publicly traded joint stock companies.

• Amendments to the Law on State and Local Property and the Law on Companies to streamline IPOs.

• Strategic decisions on listing venues, investor targeting, and governance safeguards.

The Cabinet has set an August 20 deadline for a full plan, with success hinging on turning years of stalled privatization promises into tangible results through transparency, strong regulation, and real investor appeal.

⛔ State-Owned Enterprises: From Assets to Liabilities

State-owned companies in Mongolia have increasingly been seen as a financial and operational burden, with inefficiency, political interference, and weak governance undermining performance. Currently, 109 state-participated companies operate across 11 sectors, including energy, transport, mining, and banking. If the privatization program is fully implemented, the number would be reduced to 87.

• 🌡️ Financial Performance: In 2024, the total revenue of these companies rose 10.1% year-on-year to ₮26 trillion, while net profit increased 14.9% to ₮5.7 trillion. Erdenes Tavan Tolgoi JSC led in profitability with ₮4.5 trillion in net profit, whereas Tavan Tolgoi Fuel LLC posted the largest loss at ₮227.7 billion.

🤔 Skepticism Rooted in Past Performance

This is not Mongolia’s first attempt at large-scale privatization. In 2022, the government announced that 35 state-owned enterprises would be converted to JSCs. However, only a handful of them proceeded to public listing, highlighting a pattern where ambitious privatization targets are set but actual execution falls short. Given this history, the new plan raises questions about whether it will translate into concrete results or remain largely aspirational.

⭐ Selected for you

ECONOMY & BUSINESS

• TMK Allies with Beijing-Based J-Energy to Speed up Mongolian Gas Play. (SMH)

• Peddlers Gin lands in Mongolia. (TheSpititsBusiness)

• EY Mongolia Launches Investor Survey to Support Banking Sector Reform. (EYMongolia)

• MIAT Mongolian Airlines receives one CRJ700. (CAPA)

• Crisis to Resilience: Supporting Mongolia’s Herder Families One Year On. (IFRC)

POLITICS

• Mongolia and Finland to strengthen cooperation within UN, other international organizations. (KazInform)

• The PM Resolves to Establish the Economic Development Board as a Permanent Body. (Montsame)

• Belarus, Mongolia Discussed Expansion of Bilateral Economic Ties. (SB) 

• 60 Companies Adopt Responsible Mining Codex. (UBPost)

• Mongolia to Strengthen Cooperation with the Kingdom of Bhutan Across All Sectors. (Montsame)

CULTURE & LIFESTYLE

• Anime Ban in Mongolia? What’s Really Happening with Japanese Cartoons There. (GEEKS)

• Mongolia Returning Hoard. Probably Get ~$1 and Maybe More. (Medium)

• More Central Asia Mongolia Featured Videos and Photo Stories. (IYRP)

👀 Bhutan Explores Broad Cooperation with Mongolia

Mongolia and Bhutan, diplomatically linked since 2012, are expanding collaboration across culture, education, agriculture, traditional medicine, and media following King Jigme Khesar Namgyel Wangchuck’s 2024 state visit to Mongolia.

🤝 Expanding Partnerships: Last Thursday, delegates of Bhutan and Mongolia met to explore joint projects aimed at boosting economic growth and social progress.

🇲🇳 What Mongolia Can Learn from Bhutan

Bhutan is a global leader in happiness-centered governance, ranking 1st in the 2023 World Happiness Report’s governance sub-index, a reflection of its strong public trust and government effectiveness. Recognizing Bhutan’s success, Mongolia is eager to explore and adopt its holistic approach that balances economic growth with social wellbeing, environmental stewardship, and cultural preservation to enhance citizen satisfaction and social cohesion.

🇧🇹 What Bhutan Can Learn from Mongolia

Mongolia stands out as a leader in digital governance, having jumped 28 places in the UN E-Government Development Index between 2021 and 2023 to reach the “Very High” category. Its “E-Mongolia” platform has significantly improved public service delivery and transparency. Bhutan, facing challenges related to its dispersed population and rugged terrain, has expressed keen interest in learning from Mongolia’s experience in building scalable, citizen-focused e-government solutions.

• 🌏 A Model for Bhutan: Globally known for its Gross National Happiness approach, Bhutan views Mongolia’s digital progress as a valuable blueprint. Both nations seek to combine Mongolia’s tech advances with Bhutan’s governance philosophy through joint initiatives.

Looking Forward… Parliamentary groups from both countries will continue discussions to deepen ties and implement programs that benefit their peoples, setting a new benchmark for cooperation between these culturally rich nations.

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.