Draft law to ease investment environment submitted by Deputy Speaker

Deputy speaker M.Enkhbold submitted a draft law to make an amendment to the current law on foreign investment in firms in strategic assets to the Government on Wednesday March 27th.

The law passed last May requires that 100 billion MNT in investment or more than 49 percent stake in the firm in strategic assets must be approved by Cabinet or, in some cases, by Parliament.

But the Government thinks such a law is leading to uncertainty for existing or potential investors or may create a climate of uncertainly.

The Minister of the Cabinet Office of the Government, Ch.Saikhanbileg, stated that there is an unpleasant atmosphere in the business environment and workload since Parliament has been responsible for discussing small problems like mining drilling and transportation for the Mining sector. 

A new draft law is about to make amendments into Act 4.7 of the Strategic Investment law clearing the threshold of 100 billion MNT and so that only state owned stakes above 49 percent should be discussed by Parliament.

The Government sees that if the draft law is passed by Parliament during the spring session the permission process for foreign direct investment in firms in strategic assets can be transparent and solved in a short time.