Sme Owners Discuss Industrial Issues

Trans. by B.DULGUUN

Owners of small and medium enterprises (SME)held a meeting on Tuesday to discuss principles for future development in the industrial sector.

During the meeting, business owners highlighted, "The establishment of the new Ministry of Industry has become a major step for advancing production to a new and higher level."

They told the representatives of the Ministry of Industry that they expect "big projects" from the ministry.

Some 400 producers gathered from the capital and provinces to attend the meeting and decided to disregard frequently discussed topics, such as financial difficulties for Mongolian producers, human resource provision, and introduction of domestic products to the market. Instead, they exchanged solutions for these issues and initiated ways to develop the industrial sector.

SME owners concluded that the solution to these issues was to provide government support through financial leasing services without demanding cash or collateral, prevent stops in operations of state-owned companies, and encourage corruption-free and transparent operations. Another necessary government support was to primarily purchase domestic products, according to SME owners.

In relation to this, the Minister of Industry reported that appropriate amendments were being made in the draft law on trade and the Legislation on Procurement of Goods, Works and Services with state and local funds. He also maintained that the main objective of the industrial policy was to support production that develops exportation and substitutes import products.

The ministry developed an industrial overview and determined where and what type of industry can be constructed at its own initiation. It also developed a government policy on production, which is now ready for adoption.

Presently, 84.5 percent of businesses operating in Mongolia, specifically 50,600 businesses, are SMEs. These businesses produce over 20 percent of Mongolia's GDP and 0.7 percent of Mongolia's total export goods. Approximately 70 percent of economically active population make up this sector.

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