The Government of Mongolia aims to improve the governance of state-owned enterprises (SOEs) and subsequently offer them on domestic and international stock markets by bundling them under a National Investment Fund by 2027.

In this context, the Government has initiated state property policy reforms to align with international standards, signing a Memorandum of Understanding (MoU) on Cooperation on July 8, 2026, with Franklin Templeton, one of the world's leading investment management firms.

The MoU was signed by Chief of the Cabinet Secretariat of Mongolia Enkhbayar Battumur and CEO of Templeton Asset Management and Chief Investment Officer of Templeton Global Investments Manraj Sekhon.

To elevate the governance of SOEs to a new level, the Government sent proposals for cooperation to 12 leading global investment management organizations. As a result, Franklin Templeton expressed its interest in collaborating, and this MoU was established to determine potential areas of cooperation and define a roadmap for the implementation phases.

Currently, 108 state-owned enterprises are operating in Mongolia, providing jobs to 60.7 thousand people, with total assets reaching MNT 60 trillion. While some of these companies are of strategic importance and others directly compete in the market, their overall governance, profitability, return on assets, and readiness for international investment have not reached an adequate level.

Under this reform, the Government will not pursue a policy of hasty privatization of state properties. Instead, SOEs will first be evaluated using international methodologies. Only after improving their governance, financial, and operational readiness will efforts be directed toward offering them on domestic and international stock markets.

Franklin Templeton is an investment management company with a 75-year history, operating in over 30 countries worldwide. As of May 2026, it manages USD 1.78 trillion in assets. The company holds extensive experience working in Romania and the Republic of Uzbekistan on improving SOE governance, preparing them for stock markets, and attracting international investment.

Published Date:2026-07-09