Mongolia is an independent republic in East Asia, strategically located between China and Russia. The population of Mongolia is 2.8 million. The capital city is Ulaanbaatar. Other major cities include Darhan and Erdenet.

Since the early 1990s, Mongolia has been moving towards a market-based economy. In 2005, its Gross Domestic Product (GDP) amounted to US$5.272 billion while its GDP per capita was at US$1,900. In that same year, Mongolia’s GDP (real growth rate) was recorded at 6.2%.

A pristine and relatively untouched natural environment is what sets Mongolia apart from the rest of the world. It is a country endowed with natural mineral resources like oil, coal, copper, molybdenum, tungsten, phosphates, tin, nickel, zinc, fluorspar, gold, silver and iron. Its economy however, is traditionally based on agriculture and livestock breeding. Mongolia’s main local agriculture products are wheat, barley, vegetables and forage crops – in addition to livestock such as sheep, goats, cattle, camels and horses.

The burgeoning local industries that investors may be interested to consider include agriculture, exploration industry (coal, oil and gas, uranium, thorium ore, iron ore), food production, knitting industry, fur processing, leather processing, timber production, fuel production, production of chemical products, metallurgic industry, production of electricity, steam and water supply, water treatment and construction industry.

The country’s major exports include copper, apparel, livestock, animal products, cashmere, wool, hides, fluorspar and other nonferrous metals. Mongolia’s export partners include China, Canada and the USA.

Machinery & equipment, fuel, cars, food products, industrial consumer goods, chemicals, building materials, sugar and tea account for most of Mongolia’s imports. Its import partners include Russia, China, Japan, South Korea and Germany.

At present, Malaysia’s exports to Mongolia by product sectors are electrical & electronics products, processed food, paper & pulp products, beverages & tobacco, rubber products, non – metallic mineral products, manufactures of metal, chemicals & chemical products, wood products, manufactures of plastics, palm oil and other vegetable / animal fats & oil.

MIDA and MASSA organized a seminar on “Doing Business with Mongolia” recently. For more information on doing business with Mongolia, contact us at: mail@massa.net.my. Alternatively, log on to www.investmongolia.com