Oxford Business Group THE INSIDE EDGE

Mongolia: Short and Medium Term Investment Advantages

Paulius Kuncinas, Regional Editor, Asia

Oxford Business Group THE INSIDE EDGE

•Compelling Investment Proposition

•Extremely Risk Averse Investment Environment

•Key Risk is Dutch Disease – Overeliance on Resources

•Risk is manageable

•Diversification – an urgent priority

Key Findings:

Oxford Business Group THE INSIDE EDGE

What Sets Mongolia Apart?

• Late Blossom Commodity Story

• Strong Regional Demand

• Democratic Institutions

• Fast Income Growth

• Pent Up Domestic Demand

Oxford Business Group THE INSIDE EDGE

Downside Risks

• Boom-Bust Cycles

• Procyclical policies

• Commodity Price Volatility

• Inflation

• Geopolitics Challenges

• Inflation is the main Risk

• Mongolia’s politicians are entering into a new social contract with its population

• The risk is of repeating the mistakes of crowding out private sector and creating a paternalist state

Oxford Business Group THE INSIDE EDGE

Lessons from Asia

• Mongolia - Unique Asian Growth Story

• Brunei an interesting comparison

• Malaysia offers some lessons

• Papua New Guinea (PNG) same cycle

Oxford Business Group THE INSIDE EDGE

Diversify Where? Low Hanging Fruits

• Play to Strengths – Agriculture

• Tourism – Vast Potential

• Land intensive industries

• Renewable Energy

• Data Storage

• Transit logistics

Oxford Business Group THE INSIDE EDGE

THANK YOU!