In a bid to reverse the slump that has gripped the economy, Mongolia would be replacing its 2012 Strategic Entities Foreign Investment Law (SEFIL) with a new measure. The SEFIL has curbed foreign ownership of strategic sectors like mining, banking and finance and telecommunications. The SEFIL also provided that firms who want to acquire at least 33% of a firm belonging to the "strategic" sector must get approval from the government.
According to Mongolia's Director of Foreign Investment at the Economic Development Ministry Sereeter Javkhlanbaatar, the new policy would assuage investor fears on ownership limits. He told investors, "We won't separate the market between strategic and non-strategic."
Should the new measure be passed, the new law would still continue to put limits on the efforts of state-owned companies to buy assets in Mongolia.
The SEFIL currently requires Mongolian government approval for any state-owned company that wishes to acquire a strategic asset. The new law, however, would put the limits on all assets of all sectors, not just those classified as strategic.
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