Mongolia to build 2022 km of highways www.news.mn

Plans are in hand in Mongolia for a series of road development works within the next four years. The programme calls for the construction of 2,022km of surfaced roads. In addition, new concrete bridges will be built under these plans.

Siemens Responds To Mongolian Government’s Letter About Verstappen Slur www.formula1news.co.uk

Last month, Max Verstappen sparked controversy by calling Lance Stroll a “mongol” after they crashed in Free Practice Two (FP2) at the Portuguese Grand Prix.

The resolution of the Government of Mongolia endorsed at the Cabinet meeting on Nov 18, 2020 Source: Eagle TV broadcast

The regular Cabinet meeting was held on November 18, 2020 and the following issues were discussed and decisions were made. The resolution is endorsed in respect to measures to support the economy in connection with the transition to nation-wide all-our readiness level (#3). These include:

1. In order to support the livelihoods of the people, MLSP Ariunzaya and MoF Khurelbaatar are ordered to allocate the monthly child allowance of MNT 100,000 for [each child in ages up to] 18-year-old ages and social welfare pensions, benefits and assistance services promptly and without causing congestion. From April 1, 2020, we have increased child allowances and welfare payments to combat the epidemic. This decision must be in effect until July 1, 2021 next year.

2. It is ordered to formulate a draft law on exempting the private sector enterprises and organizations from default interest and penalties, except the state owned or local government owned entities and/or entities with the state shareholding, who have had reported by declaring withholdings during the period between November 1, 2020 to July 1, 2020 but couldn’t pay their social insurance/security contributions within the legal terms. Such draft law shall be discussed at the government for their further endorsement.

3. The Finance Minister is ordered to formulate the draft law on exempting [the taxpayer] from the tax default interest and penalties, in case if the [taxpayer] did not pay the payments and due taxes declared as taxable in its [tax] report in accordance to the respective tax laws, during the period by July 1, 2021. The Finance Minister is ordered to get it discussed by the government for further endorsement. It will also take in effect on November 1, 2020.

4. The Finance Minister is ordered to formulate a draft Law on relief of corporate income tax, which was to be taxable over the rental income in respective decreased amount, in case if the claim of decreased rental fee of a taxpayer has been proven with facts, who has leased his/her premises or areas for the purpose of commercial/shopping center, trade, industry, service, private school, kindergarten, and childcare service until July 1, 2021. The Finance Minister is ordered to get this draft law discussed by the government for further endorsement. This measure should also take effect from November 1, 2020.

5. In order to ensure the stability of food supply until July 1, 2021, the MoFALI Mendsaikhan and MoF Khurelbaatar are ordered to formulate a draft Law on exempting all types of imported food rice, vegetable oil as well as hay, animal feed, fodder seeds, food wheat, wheat seeds, oily plants, plant crude oil, which are required to easily overcome the winter and spring of 2020, from customs [import] duty and VAT and also on exempting domestically processed and sold vegetable oils, hay, all types of animal feed/forage, and food rice from VAT. The Ministers are ordered to get the draft law discussed by the government for further endorsement.

6. The Deputy Prime Minister (DPM) and respective Ministers are ordered to establish the joint emergency task forces comprised of enterprises and organizations, which operate in food sector and to take measures by ensuring normal operations, productions, packaging, delivery, distribution, and sales services of food products, on the basis of meeting the infection prevention requirements issued by the Ministry of Health.

7. The President of the Central Bank of Mongolia Lkhagvasuren, the Chairman of Financial regulation commission Bayartsaikhan are advised to postpone/differ the repayment of principal and interest payment of the preferential mortgage loans, which is implemented by the government, on basis of borrower’s request during the period until July 1, 2021. They are also advised to take regulatory measures to extend the loan agreement without increasing the outstanding amount and the decision was made to have MoF immediately implement this measure. Its implementation will take place from November 1, 2020 to July 1, 2021. It can be understood that this work will be officially implemented. Basically, if a person with a mortgage loan claims that he/she has poor solvency and thus requests postponement of his/her loan repayment [term], then he/she has the opportunity to postpone the principal and interest until July 1, 2021.

8. In addition, if a person or business entity that has received a loan from a non-bank financial institution or Savings and Credit Cooperative is considered insolvent, he/she has the right to apply for this preferential provision by submitting a specific request.

9. MoMHI Yondon is ordered to transfer companies exporting minerals and petroleum products to a special infection prevention regime, to protect all employees from infectious diseases, and to create safe protection conditions.

10. MoFA, MoMHI, and MoRTD are ordered to present and resolve an issue of intensifying the implementation of the “Green Gateway” at the Mongolian and Chinese border check-points and of continuing the normal and uninterrupted exports of minerals and oil to the People’s Republic of China through diplomatic channels. The government is taking urgent measures to ensure that we do not restrict our export products.

11. For the purpose of continuation of the normal export of minerals and oil, DPM and Chair of the State Emergency Commission (SEC) Sodbaatar, MoRTD Khaltar, MoMHI Yondon, MoF Khurelbaatar and respective aimag governors are ordered to ensure that the border checkpoints are operated at full capacity under the emergency prevention regime, drivers transporting through Gashuun-Sukhait and Shivee Khuren border check-points within scope of Tavan Tolgoi, Nariin Sukhait, Oyu Tolgoi mines are fully covered under tests, to declare those border check-points as “green gateway/zone”, and to arrange this task without transportation queue.

12. DPM Sodbaatar and respective officials are ordered to take measures on disinfecting all types of inbound mails and parcels into Mongolia.

13. For the purpose of using in the diagnosis and treatment of the cases of Coronavirus virus pandemic during the period until the end of 2021, the State Great Hural (Parliament) did endorse the law on August 28, 2020, which exempted the imported diagnostic kits, drugs, medical devices, equipment, disinfectants and masks from customs import duty and VAT. MoH and Head of Customs General Administration are ordered to organize the promotion of the law to the public.

14. The Head of Mongolian Tax Authority is ordered to organize a public awareness campaign on the legal provision of carrying the loss, which is reflected in a taxpayer’s 2020 annual tax report/declaration, forward onto [next] four consecutive years of taxation, in accordance to the regulation inscribed in an Article # 19 of the Corporate Income Tax Law.

15. The relevant officials were ordered to urgently create opportunities on intensifying digital reform of tax authority and customs administration, digitalizing customs clearance, tax reporting, tax payment, and public services, avoiding face-to-face contact with citizens, reducing human involvement in their activities, preventing the spread of infectious diseases, and creating conditions for citizens to receive services as quickly and easily as possible.

16. The MoF Khurelbaatar is ordered to deduct tax arrears [of the taxpayer] from time to time, in case if that taxpayer, who owes tax arrears, indeed has receivables for payments for goods, works and services performed with the state and local budget funding and yet has overpayments, based on that taxpayer’s request.

17. MoFALI Mendsaikhan is ordered to streamline the operation of the Credit Guarantee Fund in accordance with the laws to revitalize the business and to make measure on revitalizing this fund’s operation.

18. All budget governors are ordered to make payments promptly to the entities, who delivered works and services to the state/budget organizations, state owned enterprises, and JVs with the state shareholding.

19. All budget governors are ordered to procure the domestic goods/products for the purpose of overcoming economic difficulties and supporting the continuity of domestic production, based on provisions inscribed in articles # 10 and 11 of the Law on Procurement of Goods and Services with State and Local Funds.

20. In order to provide equal opportunities for enterprises to participate in tenders, all budget governors are ordered to extend the deadline for all the types of selections of tender offers/bidders to be received during the period of nation-wide all-out readiness level until December 4, 2020. We hope that by December 1, 2020, there is an opportunity to overcome this situation.

21. In connection with the transferring to the state of nation-wide all-out readiness level, MoF Khirelbaatar is ordered to continue the austerity regime of budget governors in accordance with the budget revenue structure, and to prioritize expenditures other than salaries and pensions.

22. All member of the government are ordered to formulate their proposals of economic, budget, and financial measures to ensure the normal operation of production, services and business entities and submit it to the SEC meeting, and respective officials are ordered to take immediate actions on the spot.

23. DPM and Chair of SEC Sodbaatar, MoC Chuluun, and respective officials are ordered to ensure social distancing with 2 meters between people, wearing masks regularly, monitoring the body temperature of clients and employees regularly, placing hand sanitizers, sanitizing and disinfecting on daily basis, placing recommendations on Corona virus prevention readily available in front of public sight, and facilitating possibility and condition, where people get aware of and comply with. They are also ordered to take measures on publicizing and broadcasting [TV] programs, which reflect this resolution, recommendations and requirements issued by MoH, and contents supported and reflected the public mentality, enlightenment, and national solidarity and customs.

I would like to inform you and bring to your attention about such resolution of the Government of Mongolia, which was endorsed at today's Cabinet meeting.

By:Prime Minister of Mongolia, Mr. Ch.Khurelsukh

Unofficial transcript and translation by Sengelmaa.D, Communication Consultant and Chief Simultaneous Interpreter

What China’s five year plan means for Mongolia www.mongoliaweekly.org

At the end of October, China updated the world on its plans for the next five years and beyond.

These five year plans are a common feature of Chinese government. This one is the 14th so far, and is formally known (unsurprisingly) as the 14th Five Year Plan. A blueprint was formalised at a gathering called the Fifth Plenum, which is the latest in a scheduled series of seven meetings that occur in each of China’s five-year leadership terms.

In a public release, China’s leadership generally said they achieved the goals of the last five-year plan, which included more innovation in industry and services, green development, boosting e-commerce, increasing social insurance and opening financial markets.

They also believe China has achieved its goal of becoming a ‘moderately prosperous society’, with analysts placing the economy (in nominal terms) at 67 per cent the size of the US.

In a nutshell, the latest plan looks to build on the last one but places a greater emphasis on expanding domestic consumption.

It also emphasises a green economy and independent technological development in light of a growing trade conflict with the US.

However, it comes at a challenging time for China, with economic growth at near-unprecedented lows and increasing international resistance to its assertiveness in the Asia-Pacific.

Interestingly, experts have noted that some goals that were originally meant to be achieved in 2049 – the government’s 100th anniversary - have been brought forward to 2035. One hypothesis is that China’s leader, Xi Jinping, wants to be around to take credit for the country’s transformation (he will be 82 years old in 2035).

So for Mongolia, there are three main takeaways.

First, Xi Jinping is going to stick around for a long time.

According to a major US think tank, the document makes so many references to Xi that it’s clear there won’t be a challenge to his leadership any time soon. This means Chinese relations with Mongolia – to the extent that they are influenced by Xi’s thinking – will remain largely as they are, although with flashpoints (particularly over China’s policies towards ethnic Mongolians in Inner Mongolia).

Second, the document’s emphasis on a green economy, combined with China’s recent promise to go carbon neutral by 2060, means that Mongolia may need to diversify its energy industry to remain relevant to Chinese consumers.

Coal may not cut it for much longer.

Lithium and renewables could prove to be good alternatives – but only if China can’t meet demand from within its own borders.

Third, analysts say the document is evidence of a sort of ‘siege mentality’ amongst China’s leadership. In other words, Xi believes the country is destined for rivalry with the US, which brings ‘new challenges and opportunities’. For Mongolia, this means the two superpowers are likely to continue seeking influence in Ulaanbaatar through new infrastructure programs, trade, education, and more.

In short, there doesn’t seem to be anything ground-breaking in terms of Mongolia-China relations from this latest document. But it is another arrow pointing in the same direction: Mongolia’s massive southern neighbour intends to keep growing under the unchallenged stewardship of its most powerful leader since Mao.

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