“The supply contracts Australia lost have not been recovered, while Mongolia has managed to maintain them. Coal projections are off the charts. The question will be how Mongolia can capitalise on this without harming its other industries.”
Oscar Mendoza, Chief Operating Officer of Frontier Securities LLC.
“The economy is entering another spring.In the past two years, the country’s working population expanded the most in half a century.”
S.Batbold, Prime Minister.
“When I told my board that airline passenger traffic would double this year compared to 2011, and that our airline revenues would also double, they told me I was too pessimistic. The economy is growing, everything is expanding and thus the service industries that we are in will continue to expand.”
Bayanjargal Byambasaikhan, chief executive of Newcom.
“We need to be honest with ourselves. There is still much work to be done in terms of Mongolian governance. Lack of good governance hobbles growth. I’m bullish on Mongolia though. It will be the success story in Asia in the coming decade.”
Gregory Goldhawk, Ambassador of Canada in Mongolia.
“In its continuing bid to weed out speculators, the Government willnot resume issuance of new mining licences this year. We want more government control over this to make sure people with the licences truly invest in the mining and exploration.”
D.Zorigt, Minerals and Energy Minister.
“The sovereign ratings on Mongolia reflect the country’s underdeveloped, resource-based economic profile and weak policy environment. Mongolia’s exceptionally strong growth outlook over the medium term, and moderating public and external debt ratios balance these weaknesses. Continued strong donor and multilateral support also underpin the rating by ensuring a moderate debt-servicing burden.”
Standard & Poor’s Ratings Services.
“The main message that you will read in this 250-page report is that Mongolia is open for business. Tourism is a low-hanging fruit here and without much investment in branding, Mongolia can build on its international recognition to attract tourists. We are acutely aware of risks. Large in-flows of foreign capital from the mining sector are already putting pressure on domestic prices. Procyclical fiscal policies have added a strain on managing macroeconomic imbalances.”
PauliusKuncinas, Regional Editor of The Oxford Business Group.
“The phenomenal returns are behind us, and you’ll have more reasonable returns over the next five to 10 years. Our view is that if you can take a longer-term view on Mongolia, you can do very well.”
Mark McFarland, an economist at Emirates NBD.
“The nature of the mining industry … allows a certain level of stability, as investments in mines take several years of development and orders for resources tend to be large. Mongolia is a land of opportunity, but investors must be aware of the possible landmines along the way.”
FatemaAkashah, an economist at Kuwait China Investment.
“Mongolia’s bright future is not without serious potential risks that stem from an overly rapid growth driven by resource exploitation. Populist movements have been pledging the nationalization of mining projects that were promised to be open to foreign investment. There is a lot of doubt as to whether the government will be committed to spending wisely.”
The Kuwait China Investment Company, in a note.
“Shaking off the legacy of a planned economy has proven tough.It’s a methodological battlefield. They didn’t really have a 20th-century format, so they’re just figuring it out as they go, which makes doing business in Mongolia exciting, but not without a reasonable appetite for amuity.”
John Karlsen, CEO of Newcom Mining Services.
“We still don’t have permission from the government to announce an open tender to build the railways, and in general there is still a deadlock when it comes to funding and building infrastructure. The government had not even raised the USD 50 million required to fund a series of feasibility studies and projects designs drawn up last year.”
P. Luvsandavag, vice-chairman of the Mongolia Railway Authority.
“Now it’s extremely important to strengthen and defend democratic values. After the MPP changed its name [from the Mongolian People’s Revolutionary Party], it began to use the word democracy everywhere. Although it seems to accept democracy, it is attempting to undermine democratic values and achievements.”
S. Erdene, a Parliament member from the Democratic Party.
“I have already seen one cargo [of Mongolian coking coal] go all the way up into Russia. Japanese interests are also getting involved. I think we will see Mongolian coal reach the sea… I think it will go to more markets.”
Gerard McCloskey of McCloskey Group.
“Our three priorities at present are to have more Mongolian companies listed on the Mongolian Stock Exchange, attracting foreign investment, with the Government offering tax incentives to new companies that create more jobs, and encouraging adoption of innovative ideas and practices.”
S.Batbold, Prime Minister.
“The country’s GDP growth accelerated to an unprecedented 17.3 per cent in 2011 from 6.4 percent in 2010 and the unemployment rate fell from 13 per cent in 2010 to 9 per cent in 2011. However, real wages for unskilled workers in the urban informal sector are starting to fall as the inflation rate reached 11.1 per cent yoy in December. Sharply rising government spending is the root cause of overheating.”
The World Bank’s latest Mongolia Quarterly Economic Update.